Is Esprit Stones overvalued or undervalued?

As of 15 September 2025, the valuation grade for Esprit Stones has moved from very expensive to expensive, indicating a slight improvement in its valuation perspective. The company is currently considered overvalued. Key ratios include a PE ratio of 11.76, an EV to EBITDA of 8.25, and a ROE of 21.63%.
In comparison to its peers, Esprit Stones' PE ratio is significantly lower than that of Kajaria Ceramics, which stands at 57.12, and L T Foods, which has a PE of 25.86. This suggests that while Esprit Stones is expensive relative to its own historical valuation, it is still more attractively priced compared to some of its peers in the industry. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -33.65% compared to the Sensex's 6.02%, reinforcing the notion of overvaluation.