Is Patdiam Jeweller overvalued or undervalued?

As of 1 October 2025, Patdiam Jeweller's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its PE ratio of 9.50, EV to EBITDA of 8.59, and a PEG ratio of 0.10. In comparison, its peers such as Titan Company, which is fairly valued with a PE of 81.35, and Kalyan Jewellers, also expensive with a PE of 59.95, highlight the relative overvaluation of Patdiam Jeweller.
The company's financial metrics suggest it is not positioned favorably against its peers, especially considering its ROCE of 16.23% and ROE of 16.61%. While Patdiam has shown a positive return of 2.52% over the past year, it has underperformed the Sensex, which saw a decline of 3.90% in the same period. Overall, the combination of its valuation grade and comparative ratios leads to the conclusion that Patdiam Jeweller is overvalued.