Is Patanjali Foods overvalued or undervalued?

As of 24 July 2025, the valuation grade for Patanjali Foods has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 52.68, while the EV to EBITDA ratio is 35.72, and the Price to Book Value is 6.03. These figures indicate a premium valuation compared to its peers.
In comparison to notable competitors, Hindustan Unilever has a PE ratio of 54.96 and an EV to EBITDA of 37.90, while Britannia Industries shows a PE of 62.16 and an EV to EBITDA of 42.80. Despite Patanjali Foods' strong performance, including a 1-year stock return of 14.66% compared to the Sensex's 2.54%, the elevated valuation ratios suggest that the stock may not offer sufficient upside potential at its current price of 1891.00.