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 shift in its perceived value. The company is currently overvalued, with a staggering PE ratio of 244.44, an EV to EBIT ratio of 45.83, and an ROCE of only 2.68%. These figures suggest that investors are paying an exorbitant price relative to the company's earnings and capital efficiency.
In comparison to its peers, Tanvi Foods stands out with a much higher PE ratio than Hindustan Unilever (55.92) and Nestle India (82.53), both of which are also classified as very expensive. The EV to EBITDA ratio of 37.85 further emphasizes its overvaluation when compared to competitors like Britannia Industries (45.52) and Pidilite Industries (47.83). Additionally, Tanvi Foods has underperformed the Sensex, with a year-to-date return of -55.66% against the Sensex's 7.77%, reinforcing the notion that the stock is not only overvalued but also struggling in the market.