Is Gajanand overvalued or undervalued?

As of 30 June 2025, Gajanand'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 include a PE Ratio of 26.46, an EV to EBIT of 25.56, and a Price to Book Value of 1.49, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Gajanand's PE Ratio is notably lower than K P R Mill Ltd's 47.89, but higher than Vardhman Textile's 16.36, which is categorized as expensive. Additionally, Gajanand's EV to EBITDA of 24.11 is higher than Trident's fair valuation of 18.57, further supporting the conclusion of overvaluation. While Gajanand has outperformed the Sensex in the short term with a 9.34% return over the past week, its year-to-date performance shows a decline of 25.46%, reinforcing concerns about its current valuation.