Is Dhyaani Trade overvalued or undervalued?

As of 14 October 2025, Dhyaani Trade's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently considered overvalued, particularly in comparison to its peers. Key ratios reveal a PE ratio of 132.39, an EV to EBITDA of 18.46, and a Price to Book Value of 0.38, which highlight significant valuation concerns given the low returns on capital and equity, with ROCE at 1.15% and ROE at 0.29%.
When compared to peers, Dhyaani Trade's valuation stands out unfavorably; for instance, Kajaria Ceramics has a PE of 57.84 and is deemed expensive, while L T Foods is classified as very attractive with a PE of 22.8. This stark contrast suggests that Dhyaani Trade's current valuation does not align well with industry standards. Additionally, the company's recent stock performance has significantly lagged behind the Sensex, with a year-to-date decline of 54.74% compared to a 4.98% increase in the index, further reinforcing the notion that it is overvalued in the current market environment.