Is Shanthala FMCG overvalued or undervalued?

As of 14 July 2025, the valuation grade for Shanthala FMCG has moved from attractive to very attractive, indicating a significant improvement in its valuation appeal. The company is currently considered undervalued. Key ratios include a PE Ratio of 18.75, an EV to EBITDA of 17.22, and a PEG Ratio of 0.08, which suggests strong growth potential relative to its price.
In comparison to its peers, Shanthala FMCG stands out with a much lower PE Ratio than Hindustan Unilever at 56.75 and Nestle India at 74.54, both of which are classified as very expensive. The company's EV to Sales ratio of 0.33 further emphasizes its undervaluation compared to the high valuations of its competitors. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -23.22% compared to the Sensex's 6.08%, the underlying valuation metrics suggest that Shanthala FMCG presents a compelling investment opportunity.