Is Omfurn India overvalued or undervalued?

As of 26 May 2025, Omfurn India has moved from a grade of "does not qualify" to "very attractive." This indicates a significant improvement in its valuation standing. The company is currently assessed as undervalued, especially when compared to its peers in the FMCG sector. Key ratios include a PE ratio of 19.17, an EV to EBITDA of 10.34, and a PEG ratio of 0.87, which suggests strong growth potential relative to its price.
In comparison to notable peers, Hindustan Unilever Ltd. has a PE ratio of 53.88 and a PEG ratio of 37.92, while Nestlé India Ltd. shows a PE ratio of 75.2. These figures highlight that Omfurn India is trading at a much lower valuation relative to its competitors, reinforcing the assessment of being undervalued. Additionally, Omfurn India's stock has outperformed the Sensex over the past year, with a return of 77.89% compared to the Sensex's 7.87%, further supporting the attractiveness of the investment.