Is Bluestone Jewel overvalued or undervalued?

As of 5 September 2025, the valuation grade for Bluestone Jewel has moved from does not qualify to risky, indicating increased concern regarding its financial health. The company appears to be overvalued given its significant negative PE ratio of -41.90 and an EV to EBITDA ratio of 131.13, which are starkly higher than peers like Titan Company and Kalyan Jewellers, which have PE ratios of 87.55 and 64.79, respectively. Additionally, Bluestone's ROE stands at a concerning -68.75%, further emphasizing its financial struggles.
In comparison to its peers, Bluestone Jewel's valuation metrics are troubling. While Titan Company and Kalyan Jewellers are categorized as expensive, Bluestone's ratios suggest it is not only underperforming but also carries a high risk for investors. The recent stock performance shows a 13.3% return over the past week, significantly outpacing the Sensex's 1.13% return, but this short-term gain does not mitigate the overall valuation concerns. Overall, Bluestone Jewel is assessed as overvalued based on its financial ratios and peer comparisons.