Is Shanthala FMCG overvalued or undervalued?

As of 7 July 2025, the valuation grade for Shanthala FMCG has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the FMCG sector. Key ratios include a PE ratio of 18.75, an EV to EBITDA ratio of 17.22, and a PEG ratio of 0.08, which suggests that the stock is priced favorably relative to its growth potential.
In comparison to notable peers, Hindustan Unilever has a PE ratio of 54.36, and Nestle India stands at 75.46, both of which are significantly higher than Shanthala FMCG's valuation. This highlights Shanthala's relative attractiveness in the market. Despite recent stock performance showing a decline of 60.67% over the past year, the valuation metrics suggest that the company is positioned well for potential recovery, particularly given its low EV to Sales ratio of 0.33, indicating strong sales relative to enterprise value.