Is Devyani Intl. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Devyani International has moved from fair to attractive. The company is currently considered undervalued, with a PE ratio of 1457.38, an EV to EBITDA of 28.55, and a ROCE of 5.88%. In comparison, its peers such as Page Industries have a PE ratio of 68.45 and an EV to EBITDA of 46.78, while Sapphire Foods shows a PE of 304.31 and an EV to EBITDA of 24.30, indicating that Devyani International's valuation metrics are significantly lower than those of its peers.
Despite the attractive valuation, recent stock performance has been underwhelming, with a year-to-date return of -8.23% compared to a 5.46% return for the Sensex. This suggests that while the company may be undervalued relative to its peers, market sentiment has not yet reflected this potential. Overall, Devyani International presents a compelling investment opportunity given its attractive valuation metrics.