Is Goyal Salt overvalued or undervalued?

As of 30 June 2025, Goyal Salt has moved from an attractive to a very attractive valuation grade. The company is currently undervalued, especially when compared to its peers in the FMCG sector. Key ratios include a PE ratio of 21.08, an EV to EBITDA of 23.19, and a PEG ratio of 0.52, which indicates strong growth potential relative to its price.
In comparison, Hindustan Unilever and Nestle India are considered very expensive, with PE ratios of 51.76 and 76.79, respectively. Goyal Salt's strong return on equity (ROE) of 31.40% and return on capital employed (ROCE) of 26.26% further support its undervaluation. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -18.75% compared to the Sensex's 7.92%, the fundamental metrics suggest that Goyal Salt presents a compelling investment opportunity.