Is NHC Foods overvalued or undervalued?

As of 18 July 2025, the valuation grade for NHC Foods has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 9.73, an EV to EBITDA of 7.06, and a PEG ratio of 0.11, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, NHC Foods stands out with a much lower PE ratio than Hindustan Unilever at 56.18 and Nestle India at 77.01, both of which are classified as very expensive. Additionally, NHC Foods' EV to EBITDA ratio of 7.06 is significantly more favorable than the industry averages, reinforcing its undervaluation. Despite a challenging year-to-date return of -65.84%, the company's long-term performance over five years shows a remarkable increase of 535.04%, suggesting strong underlying growth potential.