Is NHC Foods overvalued or undervalued?

As of 1 October 2025, NHC Foods has moved from an attractive to a very attractive valuation grade, indicating a significant improvement in its perceived value. 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, 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 its low valuation metrics; for instance, Hindustan Unilever has a PE ratio of 56.02, while Nestle India’s PE ratio is 74.75, both categorizing them as very expensive. This stark contrast highlights NHC Foods' relative undervaluation in the FMCG sector. Although 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%, the underlying valuation metrics suggest a strong potential for recovery and growth.