Is Rajnish Retail overvalued or undervalued?

As of 1 October 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 118.66, an EV to EBITDA ratio of 113.35, and a ROE of only 0.81%. In comparison to its peers, Titan Company, which is fairly valued, has a PE ratio of 81.35, while Kalyan Jewellers, considered expensive, has a PE ratio of 59.95.
The valuation metrics suggest that Rajnish Retail is trading at a premium compared to its industry peers, which raises concerns about its sustainability and growth prospects. Notably, despite a strong historical performance over the long term, the company's year-to-date return of -28.25% contrasts sharply with the Sensex's positive return of 3.64%, reinforcing the notion that the stock may be overvalued in the current market environment.