Is Sanghvi Brands overvalued or undervalued?

As of 29 May 2025, the valuation grade for Sanghvi Brands has moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 11.40, an EV to EBITDA of 7.36, and a PEG ratio of 0.12, which suggests strong growth potential relative to its price.
In comparison to peers in the Hotels & Resorts industry, Sanghvi Brands stands out with a PE ratio of 11.40, while its closest competitor has a higher valuation, indicating that Sanghvi is trading at a discount. Additionally, the company boasts impressive returns on capital, with a ROCE of 53.00% and an ROE of 22.38%. Despite recent stock underperformance compared to the Sensex, particularly over the past year, the current valuation metrics suggest that Sanghvi Brands presents a compelling investment opportunity.