Is Banaras Beads overvalued or undervalued?

As of 31 October 2025, the valuation grade for Banaras Beads has moved from very expensive to expensive. Despite this slight improvement, the company remains overvalued. Key ratios indicate significant concerns, with a PE ratio of 52.45, an EV to EBITDA of 65.59, and a Price to Book Value of just 0.17, suggesting that the stock price is not justified by its earnings or asset base.
In comparison to its peers, Banaras Beads' PE ratio is higher than Altius Telecom's 55.48 and significantly above Sagility's 30.79, which further underscores its overvaluation. Additionally, while the company has shown strong returns over the past few years, outperforming the Sensex in both 3-year and 5-year periods, the current high valuation metrics indicate that investors may be overestimating future growth potential.