Is Source Natural overvalued or undervalued?

As of 28 August 2025, Source Natural's valuation grade has moved from attractive to fair, indicating a shift in its perceived market value. The company is currently fairly valued, with a PE ratio of 29.29, an EV to EBITDA ratio of 16.33, and a PEG ratio of 0.46. In comparison to its peers, Source Natural's PE ratio is lower than that of Sun Pharma, which stands at 33.18, and significantly lower than Divi's Lab at 70.66, both of which are considered expensive.
Despite the fair valuation, Source Natural has shown a mixed performance against the Sensex, with a year-to-date return of -26.45% compared to the Sensex's 2.48%. This underperformance, alongside its current ratios, suggests that while the company is not undervalued, it may face challenges in regaining investor confidence in the near term.