Is Orient Beverages overvalued or undervalued?

As of 10 October 2025, Orient Beverages has moved from an attractive to a fair valuation grade. The company is currently fairly valued based on its financial metrics, with a PE ratio of 21.96, an EV to EBITDA of 29.60, and a ROE of 14.37%. When compared to peers, such as Hindustan Unilever with a PE of 55.78 and Nestle India with a PE of 76.90, Orient Beverages appears more reasonably priced, although it still reflects a premium in the context of its industry.
Despite the fair valuation, the company's recent stock performance has been underwhelming, with a year-to-date return of -26.08% compared to the Sensex's 5.58%. This underperformance, coupled with the high EV to EBIT ratio of 75.86, suggests that while the stock is not overvalued, it may not be the best investment opportunity at this time.