Is Esprit Stones overvalued or undervalued?

As of 23 September 2025, the valuation grade for Esprit Stones has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently deemed overvalued based on its financial metrics. Key ratios include a PE ratio of 11.70, an EV to EBITDA of 8.23, and a ROE of 21.63%.
When compared to peers, Esprit Stones' valuation stands out unfavorably; for instance, Kajaria Ceramics has a PE ratio of 55.47, while L T Foods boasts a more attractive valuation with a PE of 24.28. The recent stock performance has also been underwhelming, with a year-to-date return of -33.65%, contrasting sharply with the Sensex's gain of 6.45% during the same period. This combination of high valuation and poor relative performance suggests that Esprit Stones is not a compelling investment at its current price.