Is Newtrac Foods overvalued or undervalued?

As of 20 October 2025, the valuation grade for Newtrac Foods has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 26.62, an EV to EBIT of 18.15, and a ROCE of 25.19%, which suggest a solid operational performance relative to its valuation.
In comparison to its peers, Newtrac Foods' PE ratio is lower than that of K P R Mill Ltd, which stands at 42.59, and Trident, which has a PE of 32.64, reinforcing the notion of fair valuation. Notably, while Newtrac Foods has a PEG ratio of 0.00, indicating no growth expectations priced in, it still maintains a competitive edge with a strong ROE of 16.10%. Recent stock performance has been underwhelming, with a year-to-date decline of 29.52% compared to a 7.97% gain in the Sensex, which may reflect market sentiment rather than fundamental value.