Is Jyothy Labs overvalued or undervalued?

As of 31 October 2025, Jyothy Labs has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. 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 as more reasonably priced, especially against Hindustan Unilever with a PE of 54.79 and Nestle India at 81.91. Despite recent underperformance relative to the Sensex, with a year-to-date return of -20.82% compared to the Sensex's 7.42%, the strong fundamentals suggest that Jyothy Labs presents a compelling investment opportunity at its current price of 314.65.