Is Dhyaani Trade overvalued or undervalued?

As of 12 November 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 178.24, which significantly exceeds the industry averages of its peers. For instance, Kajaria Ceramics and L T Foods, which are rated attractive, have PE ratios of 45.01 and 22.75, respectively. Additionally, Dhyaani Trade's EV to EBITDA and EV to EBIT both stand at 23.00, indicating a premium compared to peers like L T Foods, which has an EV to EBITDA of 14.39.
The company’s ROCE and ROE are notably low at 1.15% and 0.29%, respectively, further supporting the overvaluation stance. While Dhyaani Trade has shown a strong 1-month return of 30.9% compared to the Sensex's 2.38%, its year-to-date performance is concerning with a decline of 37.77% against the Sensex's gain of 8.10%. Overall, the combination of high valuation ratios and poor returns suggests that Dhyaani Trade is overvalued in the current market context.