Is Digjam overvalued or undervalued?

As of 7 November 2025, the valuation grade for Digjam has moved from does not qualify to expensive, indicating a significant shift in its perceived value. Based on the analysis, Digjam appears to be overvalued. The company has a PE Ratio of 86.98, an EV to EBITDA of 135.19, and a Price to Book Value of 2.07, which are considerably high compared to its peers.
In comparison, K P R Mill Ltd, considered very expensive, has a PE Ratio of 43.65, while Trident, which is rated fair, has a PE Ratio of 32.8. Additionally, Vardhman Textile, rated attractive, shows a PE Ratio of 15.12. These comparisons highlight that Digjam's valuation metrics are significantly higher than those of its peers, reinforcing the conclusion of overvaluation. Furthermore, the company's stock has underperformed against the Sensex, with a year-to-date return of -25.31% compared to the Sensex's gain of 6.50%, further supporting the view that Digjam is not a favorable investment at its current price of 47.84.