Is Bluestone Jewel overvalued or undervalued?

As of 5 September 2025, Bluestone Jewel's valuation grade has moved from does not qualify to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued based on its key ratios, including a PE ratio of -41.90, an EV to EBITDA of 131.13, and a Price to Book Value of 28.81. These figures suggest that the market is pricing the stock at an unsustainable level relative to its earnings and asset value.
In comparison to its peers, Bluestone Jewel's valuation stands out unfavorably. For instance, Titan Company has a PE ratio of 87.55, while Kalyan Jewellers is at 64.79, both of which are significantly higher than Bluestone's negative PE. Additionally, PC Jeweller, categorized as very attractive, boasts a PE of 14.94, further emphasizing Bluestone's overvaluation. Despite a recent stock return of 13.3% over the past week, which outperformed the Sensex's 1.13%, the overall financial metrics suggest that Bluestone Jewel is overvalued in the current market context.