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 market perception. The company is currently considered overvalued, with a PE ratio of 22.88, an EV to EBITDA of 35.22, and a PEG ratio of 0.47. These figures suggest that the stock may not be justified at its current price given its financial performance.
In comparison to its peers, Divyashakti's valuation metrics stand out unfavorably. For instance, Kajaria Ceramics, which is rated attractive, has a PE ratio of 49.32, while L T Foods, also attractive, has a PE ratio of 22.94. Furthermore, Divyashakti has underperformed against the Sensex, with a year-to-date return of -23.46% compared to the Sensex's 7.42%. This underperformance, coupled with its risky valuation grade, reinforces the conclusion that Divyashakti is overvalued in the current market environment.