Is Gajanand Inter. overvalued or undervalued?

As of 28 August 2025, Gajanand Inter. has moved from a fair valuation to an expensive rating. The company is currently overvalued, with a PE Ratio of 23.73, an EV to EBIT of 23.73, and a Price to Book Value of 1.34. In comparison to its peers, K P R Mill Ltd is rated as very expensive with a PE of 40.73, while Vardhman Textile is considered fair with a PE of 15.27, highlighting that Gajanand Inter. is priced higher than some competitors despite its lower return metrics.
The company's ROCE stands at 5.08% and ROE at 2.03%, indicating weak profitability relative to its valuation. Additionally, Gajanand Inter.'s stock has underperformed significantly year-to-date, declining by 33.16% compared to a 3.62% gain in the Sensex, further supporting the conclusion that it is overvalued in the current market environment.