Is Dhyaani Trade overvalued or undervalued?

As of 22 September 2025, the valuation grade for Dhyaani Trade has moved from very expensive to attractive, indicating a significant shift in its market perception. The company is currently assessed as undervalued, especially when considering its price-to-earnings (PE) ratio of 13.86, a price-to-book value of 0.40, and an EV to EBITDA ratio of 19.19. These ratios suggest that the company is trading at a discount compared to its earnings and book value.
In comparison to its peers, Dhyaani Trade's PE ratio is notably lower than that of Kajaria Ceramics, which stands at 56.02, and Cera Sanitary, which has a PE of 33.19. Additionally, L T Foods, categorized as very attractive, has a PE of 25.55, further highlighting Dhyaani Trade's relative undervaluation. Despite recent poor stock performance, with a year-to-date return of -49.7% compared to a 5.15% gain in the Sensex, the current valuation metrics suggest that there is potential for recovery and growth in the company's stock price.