Is R O Jewels overvalued or undervalued?

As of 2 June 2025, R O Jewels has moved from a valuation grade of risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 13.47, an EV to EBITDA of 19.89, and a Price to Book Value of 1.03, which suggest that the stock is trading at a reasonable multiple compared to its earnings and assets.
In comparison to its peers, R O Jewels stands out with a PE ratio of 13.47, while Titan Co. Ltd. has a much higher PE ratio of 94.61, and Kalyan Jewellers is considered expensive at 81.3. Additionally, PC Jeweller Ltd., which is also rated very attractive, has a PE ratio of 13.06, indicating that R O Jewels is competitively priced within its peer group. Despite recent underperformance compared to the Sensex over the past year, the valuation metrics suggest that R O Jewels presents a compelling investment opportunity at its current price of 2.66.