Is Devyani Intl. overvalued or undervalued?

As of 29 August 2025, the valuation grade for Devyani International has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued despite its high Price to Book Value of 19.62 and an EV to EBITDA ratio of 30.56. Notably, the PE Ratio is significantly negative at -1725.60, which raises concerns about profitability. The Return on Capital Employed (ROCE) stands at 5.88%, while the Return on Equity (ROE) is a mere 1.26%, suggesting inefficiencies in generating returns.
In comparison to its peers, Devyani International's valuation metrics are more favorable than those of Page Industries, which has a PE of 64.54, and Jubilant Food with a PE of 158.33. Sapphire Foods, another attractive peer, has a much higher PE of 431.34 but a lower EV to EBITDA of 24.76. Recent stock performance shows that Devyani International outperformed the Sensex over the past week and month, with returns of 2.47% and 4.53%, respectively, while the Sensex declined. This trend may reinforce the argument for its undervaluation.