Is Newtrac Foods overvalued or undervalued?

As of 1 October 2025, Newtrac Foods has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 29.94, an EV to EBITDA of 20.46, and a ROCE of 25.19%.
In comparison to its peers, Newtrac Foods' PE ratio is significantly higher than Vardhman Textile, which has a PE of 13.96 and is rated as fair, and lower than K P R Mill Ltd, which is rated very expensive with a PE of 43.71. Additionally, Newtrac Foods' PEG ratio is 0.00, indicating no growth expectations priced into the stock. The company's recent stock performance has been poor, with a year-to-date return of -20.28%, contrasting with the Sensex's positive return of 3.64% over the same period, further reinforcing the notion of overvaluation.