Is Mini Diamonds(I) overvalued or undervalued?

As of 25 August 2025, the valuation grade for Mini Diamonds(I) has moved from very expensive to expensive, indicating a slight adjustment in its perceived value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 117.16, an EV to EBITDA of 64.29, and a Price to Book Value of 6.38. These figures significantly exceed those of its peers, such as Titan Company with a PE of 87.15 and Kalyan Jewellers at 65.87, further supporting the conclusion of overvaluation.
In comparison to its industry peers, Mini Diamonds(I) shows notable outliers in its valuation metrics, particularly with a PEG ratio of 0.00, which suggests no growth expectations priced into the stock. While the company has demonstrated strong historical returns, including a 50.94% increase over the past year compared to a mere 0.68% for the Sensex, the current valuation levels indicate that investors may be paying a premium that is not justified by its financial performance.