Is Elegant Marbles overvalued or undervalued?

As of 17 July 2025, the valuation grade for Elegant Marbles has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 18.75, an EV to EBITDA of 18.76, and a Price to Book Value of 0.61, which suggest that the stock may not justify its current price given the underlying financial metrics.
In comparison to its peers, Elegant Marbles' PE ratio is notably lower than that of Elitecon International and Lloyds Enterprises, which are both categorized as very expensive with PE ratios of 273.4 and 178.83, respectively. However, the valuation still appears stretched when considering the PEG ratio of 8.58, which is significantly higher than the fair valuation benchmark. Additionally, while Elegant Marbles has underperformed the Sensex over the past year with a return of -11.15% compared to the Sensex's 1.91%, it has shown strong performance over a longer horizon, with a 5-year return of 243.93%. This contrast underscores the current overvaluation concern.