Is Simran Farms overvalued or undervalued?

As of 20 June 2025, the valuation grade for Simran Farms has moved from very attractive to attractive. The company is currently considered undervalued, with a PE ratio of 11.06, an EV to EBITDA ratio of 11.36, and a PEG ratio of 0.01. In comparison to its peers, Simran Farms stands out with a significantly lower PE ratio than Hindustan Unilever, which has a PE of 51.96, and Nestle India at 73.64, indicating a more favorable valuation relative to these expensive competitors.
Despite a recent decline in stock performance, with a year-to-date return of -5.89% compared to the Sensex's 5.46%, the long-term outlook remains positive, as evidenced by a 1-year return of 33.66%. Overall, Simran Farms appears to be a compelling investment opportunity within the FMCG sector, given its attractive valuation metrics and strong return potential compared to its peers.