Is Bhakti Gems overvalued or undervalued?

As of 7 November 2025, Bhakti Gems has moved from a fair to an expensive valuation grade. The company appears to be overvalued at this time. Key ratios include a PE ratio of 52.93, an EV to EBIT of 36.58, and a PEG ratio of 3.23, all of which suggest high valuations relative to earnings growth and operational performance.
In comparison to peers, Bhakti Gems' PE ratio is significantly lower than Titan Company's 81.03, which is rated fair, but higher than Kalyan Jewellers at 66.09, which is also considered expensive. The company's return performance has been strong, with a year-to-date return of 70.12% compared to the Sensex's 6.50%, reinforcing the notion that while the stock has performed well recently, its current valuation may not be justified by its financial metrics.