Is Venky's (India) overvalued or undervalued?

As of 1 April 2025, Venky's (India) has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, with a PE ratio of 19.63, an EV to EBITDA of 12.52, and a PEG ratio of 0.41, indicating strong growth potential relative to its price. In comparison to its peers, Venky's stands out favorably against Hindustan Unilever, which has a PE ratio of 53.88, and Nestle India, with a PE ratio of 75.2, both of which are categorized as very expensive.
Despite recent underperformance relative to the Sensex, where Venky's has shown a year-to-date decline of 9.87% compared to the Sensex's gain of 5.65%, the company's solid financial metrics suggest that it is a compelling investment opportunity at its current price of 1638.50. The favorable valuation ratios and the significant gap between Venky's and its more expensive peers reinforce the conclusion that the stock is undervalued.