Is Jyothy Labs overvalued or undervalued?

As of 17 October 2025, the valuation grade for Jyothy Labs has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued, especially when compared to its peers in the FMCG sector. Notable ratios include a PE ratio of 31.20, an EV to EBITDA of 22.25, and a ROCE of 29.33%.
In comparison to peers, Jyothy Labs stands out with a significantly lower PE ratio than Hindustan Unilever at 57.55 and Nestle India at 83.02, both of which are classified as very expensive. The PEG ratio for Jyothy Labs is 0.00, suggesting that it may be undervalued relative to its growth potential. While the stock has underperformed the Sensex over the past year, with a return of -38.97% compared to the Sensex's 3.64%, its strong fundamentals suggest a favorable outlook moving forward.