Is Simran Farms overvalued or undervalued?

As of 14 August 2025, the valuation grade for Simran Farms has moved from very attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued, particularly when considering its negative PE ratio of -29.31 and an EV to EBITDA ratio of -68.29, which are starkly unfavorable compared to industry peers. The Price to Book Value stands at 1.50, suggesting that the market is pricing the company at a premium relative to its net assets.
In comparison to its peers, Simran Farms' financial metrics are considerably weaker. For instance, Hindustan Unilever has a PE ratio of 54.86 and an EV to EBITDA of 38.70, while Nestle India shows even higher figures at 69.82 and 44.94, respectively. These comparisons highlight the risk associated with investing in Simran Farms, especially given its recent stock performance, which has underperformed the Sensex across various time frames, including a YTD decline of 11.89% compared to the Sensex's 3.15% gain.