Is Digjam overvalued or undervalued?

As of 6 November 2025, the valuation grade for Digjam has moved from risky to does not qualify, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued, particularly highlighted by its high PE ratio of 86.98 and an EV to EBITDA ratio of 135.19, which are substantially above industry norms. Additionally, the PEG ratio stands at a low 0.38, suggesting that despite its high valuation metrics, the growth expectations are not being met.
In comparison to its peers, K P R Mill Ltd, which is categorized as very expensive, has a PE ratio of 43.81, while Trident, rated as fair, has a PE of 32.8. This stark contrast underscores Digjam's overvaluation relative to its competitors. Furthermore, the company's recent stock performance has been poor, with a year-to-date decline of 25.31%, significantly underperforming the Sensex's gain of 6.62% during the same period.