Is Ovobel Foods overvalued or undervalued?

As of 25 June 2025, the valuation grade for Ovobel Foods has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 14.29, an EV to EBITDA ratio of 17.15, and a ROE of 10.57%. In comparison to its peers, Ovobel Foods stands out with a significantly lower PE ratio than Hindustan Unilever, which has a PE of 51.31, and Nestle India, which has a PE of 75.03.
Despite the fair valuation, Ovobel Foods has shown strong performance relative to the Sensex, with a year-to-date return of 17.23% compared to the Sensex's 5.91%. This performance, along with its competitive ratios, suggests that Ovobel Foods may be an attractive investment opportunity within the FMCG sector.