Is Jyothy Labs overvalued or undervalued?

As of 4 November 2025, the valuation grade for Jyothy Labs has moved from very attractive to attractive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 31.12, an EV to EBITDA of 22.19, and a ROCE of 29.33%.
In comparison to its peers, Jyothy Labs' PE ratio is significantly lower than Hindustan Unilever's 54.31 and Nestle India's 81.46, both categorized as very expensive. Despite this, the current valuation suggests that Jyothy Labs is trading at a premium relative to its historical performance and market expectations. Notably, the stock has underperformed the Sensex over the past year, with a return of -37.87% compared to the Sensex's 5.94%, reinforcing the view that the stock may be overvalued at its current price of 316.55.