Is Jyothy Labs overvalued or undervalued?

As of 29 October 2025, Jyothy Labs' valuation grade has moved from very attractive to attractive, indicating a shift in perception of its market position. The company is currently considered fairly valued. Key ratios include a PE Ratio of 31.56, an EV to EBITDA of 22.52, and a ROCE of 29.33%.
In comparison to its peers, Jyothy Labs stands out with a lower PE ratio than Hindustan Unilever, which has a PE of 55.3, and Nestle India, with a PE of 82.05. Despite its attractive valuation, Jyothy Labs has underperformed in the short term, with a year-to-date return of -19.22%, contrasting with the Sensex's gain of 8.78%. This performance, coupled with its strong ROCE, suggests that while the stock is fairly valued, it may offer potential for recovery in the longer term.