Is Pushpa Jewellers overvalued or undervalued?

As of 7 November 2025, the valuation grade for Pushpa Jewellers has moved from does not qualify to very attractive, indicating a significant improvement in its valuation profile. The company is currently assessed as undervalued. Key ratios include a PE ratio of 13.77, an EV to EBIT of 9.62, and a ROCE of 23.15%, which suggest strong operational efficiency and earnings potential relative to its price.
In comparison to peers, Pushpa Jewellers stands out with a PE ratio lower than that of Titan Company at 81.03 and Kalyan Jewellers at 66.09, both of which are considered expensive. Additionally, the EV to EBITDA ratio of 9.51 is competitive against peers like PC Jeweller, which has a similar valuation grade but a higher EV to EBITDA of 21.55. Despite recent stock performance lagging behind the Sensex, the underlying valuation metrics indicate that Pushpa Jewellers presents a compelling investment opportunity in the gems and jewellery sector.