Is Valencia Nutrit. overvalued or undervalued?

Jun 09 2025 04:24 PM IST
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As of May 29, 2025, Valencia Nutrit. is rated as risky due to its overvaluation, indicated by a PE ratio of 86.25 and a negative price to book value of -45.00, despite a strong 1-year stock return of 101.02% compared to the Sensex's 7.57%.
As of 29 May 2025, the valuation grade for Valencia Nutrit. has moved from does not qualify to risky. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of 86.25, an EV to EBIT of 97.40, and a negative price to book value of -45.00, indicating significant concerns about its valuation relative to its earnings and book value.

In comparison to its peers, Valencia Nutrit. has a PE ratio of -57.79, while Page Industries Ltd. is categorized as very expensive with a PE of 70.7, and Jubilant FoodWorks Ltd. is considered fair with a PE of 203.42. This stark contrast highlights the potential overvaluation of Valencia Nutrit. Additionally, the company has outperformed the Sensex with a 1-year stock return of 101.02% compared to the Sensex's 7.57%, which may suggest speculative interest despite its underlying financial risks.
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