Is Jyothy Labs overvalued or undervalued?

As of 7 November 2025, the valuation grade for Jyothy Labs has moved from very attractive to attractive, indicating a shift in perception regarding its market valuation. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 30.63, an EV to EBITDA of 21.82, and a ROCE of 29.33%.
When compared to its peers, Jyothy Labs' PE ratio is significantly lower than that of Hindustan Unilever at 53.63 and Nestle India at 81.21, both categorized as very expensive. Despite the attractive valuation, Jyothy Labs has underperformed in the market, with a year-to-date return of -21.62% compared to a 6.50% gain in the Sensex. This performance reinforces the notion that while the company is fairly valued, it may face challenges in the near term.