Is Shri Vasuprada overvalued or undervalued?

As of 20 October 2025, the valuation grade for Shri Vasuprada has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially given its price-to-earnings (PE) ratio of 131.79, which, while high, is competitive compared to peers like Tata Consumer at 88.68 and CCL Products at 36.16. Additionally, the price-to-book value stands at 0.72, suggesting that the market is valuing the company below its book value, which is a positive sign for potential investors.
In terms of operational efficiency, Shri Vasuprada's EV to EBITDA ratio is 17.48, which is more favorable than Tata Consumer's 47.98, further supporting the undervaluation thesis. The company's return on equity (ROE) is currently at -2.02%, reflecting challenges in profitability, yet the overall valuation metrics indicate a potential for recovery and growth. Notably, the stock has underperformed against the Sensex in the short term, with a year-to-date return of -15.29% compared to the Sensex's 7.97%, but this may present a buying opportunity for investors looking for value in the FMCG sector.