Is Patdiam Jeweller overvalued or undervalued?

As of 28 August 2025, the valuation grade for Patdiam Jeweller has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the jewelry industry. Key ratios supporting this assessment include a PE Ratio of 9.98, an EV to EBIT of 8.60, and a PEG Ratio of 0.11, all of which suggest that the company is trading at a favorable valuation relative to its earnings growth potential.
In comparison to its peers, Patdiam Jeweller's valuation stands out as very attractive, especially when juxtaposed with Titan Company, which has a PE Ratio of 86.96, and Kalyan Jewellers at 65.73. This stark contrast highlights Patdiam's competitive edge in terms of valuation metrics. Additionally, while the stock has experienced a decline of 5.74% year-to-date, it has outperformed the Sensex over the past year with a return of 30.7%, reinforcing the notion that it may be undervalued in the current market context.