Is Sky Gold & Diam. overvalued or undervalued?

As of 8 July 2025, the valuation grade for Sky Gold & Diamonds has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently deemed undervalued based on its financial metrics. Notable ratios include a PE ratio of 35.17, an EV to EBITDA of 26.08, and a PEG ratio of 0.18, which suggests strong growth potential relative to its price.
In comparison to its peers, Sky Gold & Diamonds stands out with a lower PEG ratio than Titan Company, which has a PE of 91.53, and Kalyan Jewellers, which is considered expensive with a PE of 82.88. The attractive valuation of Sky Gold & Diamonds is further supported by its robust ROCE of 16.30% and ROE of 19.40%. While the stock has faced some volatility recently, it has significantly outperformed the Sensex over the long term, with a remarkable 3-year return of 2830.88%.