Is Sheetal Univer. overvalued or undervalued?

As of 2 June 2025, the valuation grade for Sheetal University has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company appears to be overvalued based on its current metrics. The PE ratio stands at 16.82, while the EV to EBITDA ratio is 12.36, and the EV to Sales ratio is 1.62. These figures suggest that the stock is priced at a premium compared to its earnings and sales performance.
In comparison to its peers, Sheetal University’s valuation metrics are notably lower than those of Hindustan Unilever Ltd., which has a PE ratio of 53.88, and Nestlé India Ltd., with a PE ratio of 75.2. This disparity highlights that while Sheetal University is classified as very expensive, it still lags behind its competitors in terms of valuation ratios. Additionally, the company's stock has significantly outperformed the Sensex over the past year, with a return of 127.42% compared to the Sensex's 7.86%, which may further complicate its valuation narrative.