Is Universal Starch overvalued or undervalued?

As of 12 November 2025, the valuation grade for Universal Starch has moved from very attractive to attractive. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 8.04, an EV to EBIT of 7.20, and an EV to EBITDA of 5.13, which suggest a favorable valuation relative to its earnings and cash flow capabilities.
In comparison to peers, Universal Starch's PE ratio is significantly lower than that of Solar Industries at 96.33 and Gujarat Fluoroch at 59.55, both of which are categorized as very expensive. Additionally, Godrej Industries, another attractive peer, has a PE ratio of 37.28, further highlighting Universal Starch's relative undervaluation. Despite recent underperformance against the Sensex over the past year, where the stock returned -12.75% compared to the Sensex's 7.36%, the company's strong fundamentals and low valuation ratios suggest potential for future appreciation.