Is Esprit Stones overvalued or undervalued?

As of 17 September 2025, the valuation grade for Esprit Stones has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company is still considered overvalued. Key ratios include a PE ratio of 11.91, an EV to EBIT of 11.19, and an EV to EBITDA of 8.32, which are relatively low compared to peers like Kajaria Ceramics with a PE of 57.77 and Cera Sanitary with a PE of 33.54.
In comparison to its peers, Esprit Stones appears less attractive, particularly when considering its PEG ratio of 0.00, which suggests no growth expectations are priced in. The company's recent stock performance has been poor, with a year-to-date return of -32.46%, contrasting sharply with the Sensex's positive return of 7.13% in the same period. This further reinforces the assessment that Esprit Stones is overvalued in the current market context.