Is Rajnish Retail overvalued or undervalued?

As of 5 May 2025, the valuation grade for Rajnish Retail has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued, with a PE ratio of 109.88, an EV to EBIT of 104.57, and a ROCE of just 1.42%. In comparison, peers such as Titan Company, which is fairly valued, has a PE ratio of 94.61 and an EV to EBITDA of 57.21, while Kalyan Jewellers, also considered expensive, has a significantly lower PE ratio of 81.3.
The valuation metrics suggest that Rajnish Retail's stock price does not align with its earnings potential, particularly given its high PE ratio relative to peers. Furthermore, the company's recent stock performance has underperformed against the Sensex, with a year-to-date decline of 33.84% compared to the Sensex's gain of 5.63%. This reinforces the conclusion that Rajnish Retail is currently overvalued in the market.