Is Saboo Sodium overvalued or undervalued?

As of 14 November 2025, the valuation grade for Saboo Sodium has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when considering its high PE ratio of 90.88, a Price to Book Value of 1.31, and an EV to EBITDA of 18.31. These ratios suggest that despite the high PE, the company may still offer potential upside compared to its peers.
In comparison to notable competitors, Saboo Sodium's PE ratio is significantly higher than Hindustan Unilever's 53.87 and Nestle India's 81.83, both of which are categorized as very expensive. Additionally, its EV to EBITDA of 18.31 is lower than that of Hindustan Unilever's 38.16, further reinforcing the undervaluation perspective. While the stock has underperformed against the Sensex in the past year, with a return of -38.55% compared to the Sensex's 9.00%, the long-term outlook remains promising given its recent valuation upgrade.