Is Palm Jewels overvalued or undervalued?

As of 13 November 2025, the valuation grade for Palm Jewels has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as overvalued based on its high PE ratio of 37.32, which is significantly higher than its peers such as Titan Company with a PE of 82.51 and P N Gadgil Jewellers at 30.26. Additionally, the EV to EBITDA ratio stands at 22.42, which is also elevated compared to the industry average.
In comparison to its peers, Palm Jewels' PEG ratio of 0.00 suggests a lack of growth relative to its price, while competitors like Thangamayil Jewellers and Senco Gold, both rated attractive, have PEG ratios of 0.80 and 1.39, respectively. The company's return metrics are also concerning, with a ROCE of 4.72% and ROE of 3.88%, indicating inefficiencies in capital utilization. Recent stock performance shows a decline of 21.2% year-to-date, contrasting with the Sensex's gain of 8.11% in the same period, reinforcing the overvaluation narrative.