Is Tanvi Foods overvalued or undervalued?

As of 24 October 2025, the valuation grade for Tanvi Foods has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently considered overvalued. Key ratios include a PE ratio of 244.44, an EV to EBIT of 45.83, and a ROCE of only 2.68%, which are substantially higher than those of its peers.
In comparison, Hindustan Unilever has a PE ratio of 55.92 and an EV to EBITDA of 34.86, while Nestle India shows a PE of 82.53 and an EV to EBITDA of 50.74. These figures highlight that Tanvi Foods is trading at a premium compared to its industry counterparts. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -55.66% compared to the Sensex's 7.77%, further reinforcing the notion that it is overvalued.