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 perceived value. The company is currently assessed as undervalued, especially when compared to its peers in the gems and jewellery sector. Key ratios include a PE Ratio of 13.77, an EV to EBIT of 9.62, and a ROCE of 23.15%, which are all favorable indicators of financial health.
In comparison to peers, Pushpa Jewellers stands out with a PE Ratio significantly lower than 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 for Pushpa Jewellers is also more attractive compared to the industry average. Despite recent stock performance lagging behind the Sensex, with a 1-month return of -6.77% versus the Sensex's 1.53%, the overall valuation metrics suggest that Pushpa Jewellers presents a compelling investment opportunity at its current price of 126.75.