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 is currently considered overvalued based on its high PE ratio of 137.88, which significantly exceeds peers such as Kajaria Ceramics at 51 and L T Foods at 23.47. Additionally, Dhyaani Trade's EV to EBITDA stands at 19.00, while its ROCE is a mere 1.15%, indicating inefficiencies in generating returns relative to its capital employed.
In comparison to its peers, Dhyaani Trade's valuation metrics highlight its overvaluation, especially when contrasted with companies like Cera Sanitary, which has a more favorable PE of 31.57 and a lower EV to EBITDA of 24.14. The company's recent stock performance has also been disappointing, with a year-to-date return of -51.86%, compared to a positive return of 7.44% for the Sensex, further reinforcing the notion that Dhyaani Trade is not currently a sound investment.