Is Orient Beverages overvalued or undervalued?

As of 13 October 2025, the valuation grade for Orient Beverages has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE Ratio of 20.60, an EV to EBITDA of 28.81, and a ROE of 14.37%.
In comparison to its peers, Orient Beverages stands out with a significantly lower PE Ratio than Hindustan Unilever at 55.07 and Nestle India at 76.16, both categorized as very expensive. Despite recent stock performance showing a decline of 30.65% year-to-date compared to a 5.36% gain in the Sensex, the long-term outlook remains promising, with a 3-year return of 137.41%. This suggests that the current market price may not fully reflect the company's potential, reinforcing the undervaluation narrative.