Is Tanvi Foods overvalued or undervalued?

As of 22 September 2025, the valuation grade for Tanvi Foods has moved from risky to very expensive. The company is currently overvalued, with a PE ratio of 117.70, an EV to EBITDA ratio of 48.00, and a ROE of only 0.63%. In comparison, peers like Hindustan Unilever and Nestle India have PE ratios of 56.84 and 76.15, respectively, indicating that Tanvi Foods is trading at a significantly higher valuation multiple than its competitors.
The company's financial metrics, particularly its low ROCE of 2.96% and the absence of a dividend yield, further highlight its overvaluation. Despite a recent stock return of 7.94% over the past week, Tanvi Foods has underperformed the Sensex significantly year-to-date and over the past three years, suggesting that its current price does not reflect its underlying financial health.