Is Patdiam Jeweller overvalued or undervalued?

As of 1 October 2025, the valuation grade for Patdiam Jeweller has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 9.50, an EV to EBITDA of 8.59, and a ROE of 16.61%.
In comparison to its peers, Titan Company is fairly valued with a significantly higher PE Ratio of 81.35, while Kalyan Jewellers is also expensive with a PE of 59.95. The valuation metrics suggest that Patdiam Jeweller is trading at a premium relative to its financial performance, especially when compared to peers like PC Jeweller, which is very attractive with a PE of 14.27. Notably, Patdiam's recent stock performance has underperformed the Sensex, particularly in the year-to-date period, where it has declined by 10.2% compared to the Sensex's gain of 3.64%.