Is Healthy Life overvalued or undervalued?

As of 26 September 2025, Healthy Life's valuation grade has moved from very expensive to very attractive, indicating a significant shift in its market perception. The company appears undervalued, especially when considering its current PE ratio of 35.28, which is notably lower than its peers such as Hindustan Unilever at 55.46 and Nestle India at 74.54. Additionally, Healthy Life's EV to EBITDA stands at 25.01, while the industry average for its peers is considerably higher, further reinforcing its attractive valuation.
With a ROCE of 11.36% and a PEG ratio of 0.00, Healthy Life demonstrates strong operational efficiency and growth potential compared to its competitors. The recent stock performance shows a stark decline, with a year-to-date return of -71.93%, contrasting sharply with the Sensex's positive return of 2.93% in the same period. This divergence suggests that the market may have overreacted to recent challenges, presenting a compelling opportunity for investors.