Is Shanthala FMCG overvalued or undervalued?

As of 17 October 2025, the valuation grade for Shanthala FMCG has moved from attractive to very attractive, indicating a significant improvement in its valuation outlook. The company is currently assessed as undervalued. Key ratios supporting this assessment include a PE ratio of 21.41, an EV to EBITDA of 18.70, and a PEG ratio of 0.09, which suggests strong growth potential relative to its price.
In comparison to its peers, Shanthala FMCG stands out with a much lower PE ratio than Hindustan Unilever at 57.55 and Nestle India at 83.02, both of which are categorized as very expensive. Additionally, Shanthala's EV to EBITDA ratio is significantly more favorable than those of its peers, reinforcing its undervaluation. Notably, the stock has underperformed against the Sensex, with a one-year return of -41.62% compared to the Sensex's 3.88%, further highlighting the potential for recovery and value realization in the future.