Is Shanthala FMCG overvalued or undervalued?

As of 17 October 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 given its strong financial ratios, including a PE ratio of 21.41, an EV to EBITDA ratio of 18.70, and a PEG ratio of 0.09, which suggests that the stock is trading at a lower valuation relative to its growth prospects.
In comparison to its peers, Shanthala FMCG stands out as a more attractive investment, especially when contrasted with Hindustan Unilever, which has a PE ratio of 57.55, and Nestle India, with a PE ratio of 83.02. This stark difference in valuation ratios highlights Shanthala's potential for growth at a more reasonable price. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -13.29% compared to the Sensex's 8.73%, further reinforcing the notion that it may be undervalued in the current market.