Is Bella Casa Fashi overvalued or undervalued?

As of 14 August 2025, Bella Casa Fashi's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued based on its financial ratios, including a PE ratio of 32.36, an EV to EBITDA of 21.31, and a PEG ratio of 1.16. These figures suggest that the stock may be priced higher than its fundamental value warrants.
In comparison to its peers, Bella Casa Fashi's PE ratio is lower than K P R Mill Ltd, which stands at 39.62, but higher than Trident's 32.66. Additionally, the EV to EBITDA ratio is significantly higher than Vardhman Textile's 9.76, further supporting the overvaluation thesis. Notably, while Bella Casa Fashi has outperformed the Sensex over the long term, its recent performance shows a decline of 19.27% year-to-date, contrasting with the Sensex's gain of 3.15%.