Is Divyashakti overvalued or undervalued?

As of 31 October 2025, the valuation grade for Divyashakti has moved from very attractive to risky, indicating a significant shift in its market perception. The company appears to be overvalued given its current financial metrics, including a PE ratio of 22.88, an EV to EBITDA of 35.22, and a PEG ratio of 0.47. These ratios suggest that despite a relatively low price-to-book value of 0.30, the overall valuation is not justified by its financial performance.
In comparison to peers, Divyashakti's PE ratio is notably lower than that of Kajaria Ceramics at 49.32 and L T Foods at 22.94, both of which are rated as attractive. The negative ROCE of -0.47% and a low ROE of 1.31% further highlight the company's struggles, especially when compared to the more robust metrics of its peers. Additionally, the company's stock has underperformed against the Sensex over various time frames, with a year-to-date return of -23.46% compared to the Sensex's 7.42%. This combination of factors leads to the conclusion that Divyashakti is overvalued in its current state.