Is Tanvi Foods overvalued or undervalued?

As of 28 August 2025, the valuation grade for Tanvi Foods has moved from fair to very expensive. The company is currently overvalued, reflected in its high PE ratio of 105.07, an EV to EBITDA of 43.69, and a ROE of just 0.63%. In comparison, Hindustan Unilever has a PE ratio of 58.6 and an EV to EBITDA of 41.38, while Nestle India shows a PE of 74.5 and an EV to EBITDA of 47.89, indicating that Tanvi Foods is trading at a significant premium relative to its peers.
The stock has underperformed the Sensex over various periods, with a year-to-date return of -48.49% compared to the Sensex's 2.48%. Given the high valuation ratios and the company's recent stock performance, it is clear that Tanvi Foods is not a favorable investment at this time.