Is Tanvi Foods overvalued or undervalued?

As of 6 October 2025, the valuation grade for Tanvi Foods has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 102.76, an EV to EBITDA of 42.06, and a ROCE of just 2.68%. These figures suggest that investors are paying a premium for the stock compared to its earnings and capital efficiency.
In comparison to its peers, Tanvi Foods' valuation metrics are notably higher; for instance, Hindustan Unilever has a PE ratio of 56.24 and an EV to EBITDA of 39.69, while Nestle India stands at 75.57 and 48.57, respectively. The stark difference in these ratios highlights that Tanvi Foods is trading at a significant premium relative to its competitors in the FMCG sector. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -49.62%, further reinforcing the notion of overvaluation.