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. Key ratios include a PE ratio of 21.41, an EV to EBIT of 18.70, and a PEG ratio of 0.09, 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 57.55 and Nestle India at 83.02, both of which are classified as very expensive. The EV to EBITDA ratio of 18.70 also positions Shanthala favorably against its peers, who are generally trading at significantly higher multiples. 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%, reinforcing the undervaluation narrative.