Is Ovobel Foods overvalued or undervalued?

As of 18 November 2025, the valuation grade for Ovobel Foods has moved from very expensive to attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the FMCG sector. Key ratios supporting this assessment include a PE ratio of 14.24, an EV to EBITDA of 11.53, and a PEG ratio of just 0.04, which suggests strong growth potential relative to its price.
In comparison to notable peers, Ovobel Foods stands out with a much lower PE ratio than Hindustan Unilever at 53.39 and Nestle India at 81.48, both classified as very expensive. The company's return on capital employed (ROCE) is a robust 15.65%, further reinforcing its attractive valuation. Additionally, Ovobel Foods has significantly outperformed the Sensex, with a year-to-date return of 78.87% compared to the Sensex's 8.36%, highlighting its strong market performance relative to broader market trends.