Is Newtrac Foods overvalued or undervalued?

As of 26 September 2025, Newtrac Foods has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 31.81, a Price to Book Value of 5.12, and an EV to EBIT of 21.76. In comparison to its peers, K P R Mill Ltd has a significantly higher PE ratio of 44.44, while Vardhman Textile, which is rated fair, has a much lower PE ratio of 14.17, highlighting the disparity in valuation within the industry.
The company's recent stock performance has been underwhelming, with a year-to-date return of -15.31%, contrasting sharply with the Sensex's positive return of 2.93% during the same period. This further reinforces the notion that Newtrac Foods is overvalued in the current market environment.