Is Source Natural overvalued or undervalued?

As of 31 October 2025, the valuation grade for Source Natural has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 29.87, an EV to EBITDA of 16.92, and a PEG ratio of 0.47, which suggests that the stock is trading at a reasonable price relative to its growth potential.
In comparison to its peers, Source Natural's PE ratio is significantly lower than that of Sun Pharma, which stands at 35.35, and Divi's Lab, which is at 77.85, both of which are classified as expensive. Additionally, Source Natural's EV to EBITDA ratio is more favorable than that of its peers, reinforcing its attractive valuation. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -24.97% compared to the Sensex's 7.42%, the underlying financial ratios suggest that Source Natural presents a compelling investment opportunity at its current price of 144.80.