Is Esprit Stones overvalued or undervalued?

As of 16 September 2025, the valuation grade for Esprit Stones has moved from expensive to very expensive. This indicates a significant shift in perception regarding the company's valuation, suggesting that it is currently overvalued. The company exhibits a PE ratio of 12.05, an EV to EBITDA ratio of 8.38, and a ROE of 21.63%, which while decent, do not justify its current valuation status.
In comparison to its peers, Esprit Stones stands out as very expensive, particularly when juxtaposed with Kajaria Ceramics, which has a PE of 57.74, and L T Foods, which is rated very attractive with a PE of 25.63. This stark contrast underscores the overvaluation of Esprit Stones, especially given its recent stock performance, which has underperformed the Sensex, with a year-to-date return of -32.06% compared to the Sensex's 6.74%. Overall, Esprit Stones is deemed overvalued in the current market context.