Is NHC Foods overvalued or undervalued?

As of 1 October 2025, NHC Foods has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 9.22, an EV to EBITDA of 5.69, and a PEG ratio of 0.38, indicating strong potential for growth relative to its price.
In comparison to its peers, NHC Foods stands out significantly; for instance, Hindustan Unilever has a PE ratio of 56.02 and Nestle India has a staggering PE of 74.75, both categorized as very expensive. This stark contrast highlights NHC Foods' favorable valuation within the FMCG sector. While the company's recent stock performance has lagged behind the Sensex, particularly with a year-to-date return of -67.39% compared to the Sensex's 3.64%, its long-term growth potential remains compelling given its low valuation ratios.