Is Gajanand Inter. overvalued or undervalued?

As of 28 July 2025, Gajanand International's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios reveal a PE Ratio of 24.30, an EV to EBITDA of 22.74, and a ROCE of only 5.08%, which suggests that the company's earnings are not justifying its high valuation.
In comparison to its peers, Gajanand International's PE ratio is lower than K P R Mill Ltd, which stands at 49.4, but higher than Vardhman Textile, which has a PE of 15.59. The EV to EBITDA ratio also shows Gajanand International trailing behind Trident, which is at 17.01, further emphasizing its overvaluation. Additionally, the company's stock has underperformed significantly year-to-date, with a return of -31.56% compared to a 4.38% gain in the Sensex, reinforcing the notion that the current valuation may not be sustainable.