Is Bhakti Gems overvalued or undervalued?

As of 7 November 2025, the valuation grade for Bhakti Gems has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on its high valuation ratios. The PE ratio stands at 52.93, while the EV to EBITDA ratio is 34.32, and the PEG ratio is 3.23, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Bhakti Gems' valuation appears elevated. For instance, Titan Company, which is rated fair, has a PE ratio of 81.03 and an EV to EBITDA of 57.50, while Kalyan Jewellers, also expensive, has a PE ratio of 66.09. The significant disparity in these ratios highlights that Bhakti Gems may not justify its current price level. Additionally, the company's recent stock performance has outpaced the Sensex, with a year-to-date return of 70.12% compared to the Sensex's 6.50%, but this does not mitigate the overvaluation concern.