Is Jyothy Labs overvalued or undervalued?

As of 31 October 2025, the valuation grade for Jyothy Labs has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 30.94, an EV to EBITDA of 22.05, and a ROCE of 29.33%.
When compared to its peers, Jyothy Labs stands out with a much lower PE ratio than Hindustan Unilever at 54.79 and Nestle India at 81.91, both classified as very expensive. Additionally, the PEG Ratio for Jyothy Labs is 0.00, suggesting that the stock may be undervalued relative to its growth potential. Despite recent underperformance against the Sensex, with a year-to-date return of -20.82% compared to the Sensex's 7.42%, the overall valuation metrics support the conclusion that Jyothy Labs is an attractive investment opportunity.