Is Jyothy Labs overvalued or undervalued?

As of 6 November 2025, Jyothy Labs has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued, especially when compared to its peers in the FMCG sector. Key ratios include a PE ratio of 30.81, an EV to EBITDA of 21.96, and a ROCE of 29.33%, which indicate strong operational efficiency and profitability.
In comparison to its peers, Jyothy Labs stands out with a significantly lower PE ratio than Hindustan Unilever at 54.11 and Nestle India at 81.85, both of which are categorized 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, especially when contrasted with Pidilite Industries, which has a PEG of 4.58. Despite recent underperformance against the Sensex, particularly over the past year with a return of -35.94% compared to the Sensex's 3.65%, the valuation metrics suggest that Jyothy Labs presents a compelling investment opportunity.