Is Saboo Sodium overvalued or undervalued?

As of 17 November 2025, the valuation grade for Saboo Sodium has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its high PE ratio of 93.27, a Price to Book Value of 1.34, and an EV to EBITDA ratio of 18.68. These figures suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Saboo Sodium's PE ratio significantly exceeds that of Hindustan Unilever at 53.89 and Nestle India at 81.88, both of which are categorized as very expensive. Furthermore, the company's ROCE of 4.13% and ROE of 1.44% are notably low, raising concerns about its profitability relative to its valuation. While Saboo Sodium has outperformed the Sensex in the short term, with a 1-week return of 5.68% compared to the Sensex's 1.69%, its longer-term performance has been underwhelming, with a year-to-date decline of 39.39%.