Is Tanvi Foods overvalued or undervalued?

As of 24 October 2025, the valuation grade for Tanvi Foods has moved from risky to very expensive. The company is currently overvalued, as indicated by its exceptionally high PE ratio of 244.44, an EV to EBIT of 45.83, and an EV to EBITDA of 37.85. These ratios significantly exceed those of its peers, such as Hindustan Unilever with a PE of 55.92 and Nestle India with a PE of 82.53, both of which are also categorized as very expensive.
In comparison to its industry peers, Tanvi Foods' valuation metrics suggest a disconnect between its stock price and underlying financial performance, evidenced by a low ROCE of 2.68% and ROE of 0.53%. The company's recent stock performance has been poor, with a year-to-date return of -55.66%, contrasting sharply with the Sensex's gain of 7.77% during the same period. This further reinforces the conclusion that Tanvi Foods is overvalued in the current market environment.