Is A and M Jumbo overvalued or undervalued?

As of 12 November 2025, the valuation grade for A and M Jumbo has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios highlight this valuation concern: the PE Ratio stands at 46.01, while the EV to EBIT and EV to EBITDA both register at 14.19. Additionally, the ROE is notably low at 1.62%, suggesting inefficiency in generating returns relative to shareholder equity.
In comparison to its peers, A and M Jumbo's valuation appears starkly high; for instance, Supreme Industries has a PE Ratio of 58.69, and Astral's is at 83.63, both categorized as very expensive. In contrast, Finolex Industries is considered fairly valued with a PE Ratio of 24.16, indicating a more reasonable valuation in the industry. The recent performance of A and M Jumbo, with a 1-week return of -4.49% compared to a 1.09% gain in the Sensex, further underscores the market's skepticism regarding its current valuation.