Is Jet Knitwears overvalued or undervalued?

As of 26 August 2025, the valuation grade for Jet Knitwears has moved from expensive to very expensive. The company is currently overvalued, as indicated by its high PE ratio of 48.04, an EV to EBITDA ratio of 27.36, and a Price to Book Value of 2.14. Compared to its peers, Jet Knitwears stands out with a significantly higher PE ratio than K P R Mill Ltd, which has a PE of 40.67, and far exceeds Trident's PE of 32.43, both of which are also classified as very expensive or fair.
In addition to the high valuation ratios, Jet Knitwears exhibits low return metrics, with a ROCE of 5.14% and an ROE of just 1.56%, further reinforcing its overvaluation status. The stock has underperformed relative to the Sensex, particularly in the year-to-date and one-year periods, with returns of -0.91% and -5.22%, respectively, compared to the Sensex's positive returns. Overall, the combination of high valuation ratios and poor performance metrics suggests that Jet Knitwears is not a favorable investment at its current price.