Is Sapphire Foods overvalued or undervalued?

As of 9 October 2025, the valuation grade for Sapphire Foods has moved from fair to attractive, indicating a more favorable assessment of its market position. The company appears to be undervalued, especially when considering its high PE ratio of 380.41 and an EV to EBITDA ratio of 22.10, which are significantly higher than its peers. For comparison, Page Industries, deemed very expensive, has a PE ratio of 60.74, while Jubilant Food, rated fair, has a PE of 151.77.
Despite the attractive valuation grade, Sapphire Foods has shown underperformance relative to the Sensex, with a year-to-date stock return of -14.39% compared to the Sensex's 5.16%. The company's ROCE stands at 4.57% and ROE at 2.47%, which further emphasizes the need for improvement in operational efficiency. Overall, while the valuation suggests an attractive opportunity, the high ratios and recent stock performance indicate caution for potential investors.