Is Jet Knitwears overvalued or undervalued?

As of 28 August 2025, Jet Knitwears has moved from a valuation grade of very expensive to expensive, indicating a slight improvement in perceived value. However, the company is still considered overvalued based on its current metrics. The PE ratio stands at 48.04, significantly higher than peers such as K P R Mill Ltd at 40.73 and Trident at 32.1, which suggests that Jet Knitwears is trading at a premium compared to its industry counterparts. Additionally, its EV to EBITDA ratio is 27.36, again higher than the industry average, reinforcing the overvaluation stance.
The company's ROCE is only 5.14% and ROE is a mere 1.56%, which are relatively low compared to the expectations for growth in the garments and apparel sector. Furthermore, the PEG ratio is 0.00, indicating that there is no expected growth factored into the current price, which is concerning for investors. Overall, Jet Knitwears appears to be overvalued in the current market context, especially when compared to its peers and the broader market performance, where it has underperformed against the Sensex over the past year.