Is Sheetal Cool overvalued or undervalued?

As of 4 July 2025, the valuation grade for Sheetal Cool has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE Ratio of 19.45, an EV to EBIT of 13.70, and a ROCE of 14.41%.
In comparison to its peers, Sheetal Cool's PE Ratio is significantly lower than that of Hindustan Unilever, which stands at 52.77, and Nestle India, which has a PE Ratio of 74.5. This suggests that Sheetal Cool offers a more favorable valuation relative to these competitors. Despite recent underperformance against the Sensex, with a 1-year return of -47.31% compared to the Sensex's 4.23%, the company's strong fundamentals position it as an attractive investment opportunity in the FMCG sector.