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 a significant shift in its perceived investment quality. The company is currently overvalued, as evidenced by its troubling financial ratios, including a PE ratio of -41.90, an EV to EBITDA of 131.13, and a ROE of -68.75%. These figures suggest that the company is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, Bluestone Jewel's financial metrics stand out unfavorably. For instance, Titan Company has a PE ratio of 87.55, while Kalyan Jewellers shows a PE of 64.79, both indicating a more favorable valuation environment in the industry. Notably, PC Jeweller, classified as very attractive, boasts a PE ratio of 14.94, highlighting the stark contrast in value propositions within the sector. Additionally, while Bluestone Jewel has recently outperformed the Sensex with a 1-week return of 13.3%, this short-term performance does not mitigate the overall overvaluation reflected in its financial health.