Is Dhyaani Trade overvalued or undervalued?

As of 17 October 2025, the valuation grade for Dhyaani Trade has moved from attractive to fair. The company appears to be overvalued based on its high PE ratio of 137.88 and a low Price to Book Value of 0.40, indicating that the stock is trading at a premium compared to its book value. Additionally, the EV to EBIT and EV to EBITDA ratios are both at 19.00, suggesting that investors are paying a high price for earnings before interest and taxes as well as earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Dhyaani Trade's PE ratio significantly exceeds that of Kajaria Ceramics, which has a PE of 51, and L T Foods, which is at 23.47, both of which are considered fairly valued or very attractive. Furthermore, Dhyaani Trade's return performance has been notably poor, with a year-to-date decline of 51.86%, contrasting sharply with the Sensex's gain of 7.44% over the same period. Overall, the combination of high valuation ratios and poor stock performance suggests that Dhyaani Trade is overvalued in the current market context.