Is Patdiam Jeweller overvalued or undervalued?

As of 18 September 2025, the valuation grade for Patdiam Jeweller has moved from risky to very attractive, indicating a significant improvement in its investment appeal. The company is currently undervalued, supported by a PE ratio of 9.65, an EV to EBITDA of 7.80, and a PEG ratio of 0.10, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Patdiam Jeweller's valuation metrics stand out favorably. For instance, Titan Company has a PE ratio of 84.02, while Kalyan Jewellers is even more expensive at 66.37. This stark contrast highlights Patdiam's attractive valuation. Additionally, the company's return on capital employed (ROCE) is a robust 23.15%, further reinforcing its financial health. Despite a recent underperformance relative to the Sensex over the year-to-date period, where it returned -8.83% compared to the Sensex's 6.24%, the long-term performance over three years shows a remarkable return of 104.62%, indicating strong growth potential moving forward.