Is Rajnish Retail overvalued or undervalued?

As of 8 August 2025, Rajnish Retail's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of 111.29, an EV to EBIT ratio of 105.98, and a ROE of just 0.81%. These ratios starkly contrast with peers such as Titan Company, which has a PE ratio of 82.74, and Kalyan Jewellers at 67.96, both categorized as expensive.
The valuation metrics suggest that Rajnish Retail is not only out of step with its industry peers but also presents a concerning investment profile, particularly with a PEG ratio of 0.00 and a low ROCE of 1.42%. Despite recent stock performance showing a 525% return over three years, the current valuation levels raise red flags for potential investors, especially in light of the company's year-to-date decline of 32.70% compared to a modest Sensex gain of 2.20%.