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 more favorable outlook on its valuation. The company is currently assessed as undervalued, particularly when considering its headline ratios such as a PE ratio of -1725.60, an EV to EBITDA of 30.56, and an EV to Sales of 4.81. These figures suggest that while the company is experiencing significant valuation challenges, it may present an opportunity for investors.
In comparison with its peers, Devyani International's EV to EBITDA ratio of 30.56 is lower than that of Page Industries, which stands at 44.12, and Jubilant Food, which has a ratio of 27.95. Additionally, Sapphire Foods, another attractive peer, has a much higher PE ratio of 431.34, indicating that Devyani may be undervalued relative to its peers in the leisure services sector. Despite a recent underperformance against the Sensex over the longer term, the short-term returns show a positive trend, with a 1-week return of 2.47% compared to the Sensex's -1.84%.