Is Patanjali Foods overvalued or undervalued?

As of 18 July 2025, Patanjali Foods has moved from an expensive to a very expensive valuation grade. The company is currently considered overvalued. Key ratios include a PE ratio of 54.15, an EV to EBITDA of 36.72, and a Price to Book Value of 6.20.
In comparison to its peers, Hindustan Unilever has a PE ratio of 56.18 and an EV to EBITDA of 38.76, while Nestle India shows a significantly higher PE ratio of 77.01 and an EV to EBITDA of 50.74. Despite strong stock performance, with a 1-year return of 22.12% compared to the Sensex's 0.51%, the elevated valuation metrics suggest that Patanjali Foods is not a compelling investment at its current price level.