Is Narbada Gems overvalued or undervalued?

As of 25 June 2025, the valuation grade for Narbada Gems has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 22.71, an EV to EBITDA of 14.75, and a PEG ratio of 0.00, suggesting that it is trading below its intrinsic value relative to its earnings growth potential.
In comparison to its peers, Narbada Gems stands out with a more favorable valuation than Titan Company, which has a PE ratio of 97.17, and Kalyan Jewellers, which is considered expensive with a PE of 77.98. Additionally, while Narbada Gems has a lower EV to EBITDA than peers like PC Jeweller at 25.86, it demonstrates a solid position within the industry. Despite recent stock performance lagging behind the Sensex over the past year, the long-term returns of 238.49% over five years highlight its potential for growth.