Is Dhyaani Trade overvalued or undervalued?

As of 28 October 2025, Dhyaani Trade has moved from a fair to an expensive valuation grade. The company is currently considered overvalued, primarily due to its high PE ratio of 183.22 and an EV to EBITDA ratio of 23.50, both of which significantly exceed those of its peers. For comparison, Kajaria Ceramics, which is rated attractive, has a PE ratio of 49.81, while L T Foods, rated very attractive, has a much lower PE ratio of 23.23.
Additionally, Dhyaani Trade's ROCE stands at a mere 1.15% and ROE at 0.29%, indicating poor profitability relative to its market valuation. The stock has underperformed compared to the Sensex, with a year-to-date return of -36.03% against the Sensex's 8.30%. Overall, the combination of high valuation ratios and low profitability metrics suggests that Dhyaani Trade is overvalued in the current market environment.