Is Newtrac Foods overvalued or undervalued?

As of 26 September 2025, the valuation grade for Newtrac Foods has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its high ratios, including a PE ratio of 31.81, an EV to EBIT of 21.76, and a Price to Book Value of 5.12. These figures suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison to its peers, Newtrac Foods stands out with a PE ratio that is lower than K P R Mill Ltd's 44.44 but higher than Vardhman Textile's 14.17, which is rated as fair. Additionally, the EV to EBITDA ratio of 21.76 is notably higher than that of Trident, which is at 15.94, further emphasizing the overvaluation. Despite a recent uptick in stock price, Newtrac Foods has underperformed the Sensex over the past year, with a return of -46.78% compared to the Sensex's -6.30%. This performance reinforces the notion that the stock may not justify its current valuation.