Is Shanthala FMCG overvalued or undervalued?

As of 9 July 2025, the valuation grade for Shanthala FMCG has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued. Key ratios include a PE ratio of 19.12, an EV to EBITDA of 17.59, and a Price to Book Value of 0.90, which suggest that the stock is trading at a discount compared to its intrinsic value.
In comparison to its peers, Shanthala FMCG's PE ratio of 19.12 is significantly lower than Hindustan Unilever's 54.64 and Nestle India's 75.59, both of which are classified as very expensive. Additionally, Shanthala's PEG ratio of 0.08 further highlights its undervaluation relative to the high valuations of its competitors. Despite a challenging year with a stock return of -62.16%, the company's recent performance has outpaced the Sensex over the past month, reinforcing its potential for recovery.