Is Vandan Foods overvalued or undervalued?

As of 29 August 2025, Vandan Foods has moved from a grade of does not qualify to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued, particularly given its low PE ratio of 4.76 and an EV to EBITDA ratio of 3.04, which are substantially lower than its peers. Notably, the ROCE stands at an impressive 121.20%, and the ROE is also high at 72.97%, further emphasizing the company's strong financial performance.
In comparison to its peers, Vandan Foods' valuation metrics are strikingly favorable; for instance, Gokul Agro has a PE ratio of 18.18 and an EV to EBITDA of 9.05, categorizing it as very expensive. Similarly, Guj. Ambuja Exp is considered attractive with a PE of 19.96. The stark contrast in these ratios suggests that Vandan Foods is undervalued relative to its industry peers. Additionally, while the stock has shown a slight increase of 0.36% over the past week, the Sensex has declined by 1.84%, reinforcing the potential for upward momentum in Vandan Foods' stock price.