Is Sula Vineyards overvalued or undervalued?

As of 10 February 2025, Sula Vineyards has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE ratio of 34.89, an EV to EBITDA of 18.45, and a ROCE of 12.86%.
In the peer comparison, Sula Vineyards stands out against Varun Beverages Ltd., which has a PE ratio of 57.96, and United Spirits Ltd., with a PE ratio of 71.43, both categorized as very expensive. Despite recent stock performance showing a decline of 29.23% year-to-date compared to a 5.56% gain in the Sensex, the attractive valuation suggests potential for recovery and growth in the future.