Is Sonalis Consumer overvalued or undervalued?

As of 9 September 2025, the valuation grade for Sonalis Consumer has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 11.20, an EV to EBIT of 8.55, and an EV to EBITDA of 8.51, which are significantly lower than its peers in the FMCG sector, such as Hindustan Unilever with a PE ratio of 58.33 and Nestle India with a PE ratio of 76.92.
Despite the recent grade change, Sonalis Consumer's valuation remains high relative to its financial metrics, indicating that it is overvalued in comparison to its peers. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -9.21% compared to the Sensex's 3.79%, reinforcing the notion that the stock is not a favorable investment at its current price of 62.50.