Is R&B Denims overvalued or undervalued?

As of 3 September 2025, the valuation grade for R&B Denims has moved from expensive to very expensive. This indicates a significant shift in perception regarding the company's valuation. The company is currently assessed as overvalued, particularly when considering its PE ratio of 32.98, EV to EBIT of 36.83, and EV to EBITDA of 23.88, which are all elevated compared to industry norms.
In comparison to its peers, R&B Denims stands out with a PE ratio lower than K P R Mill Ltd at 41.45 but higher than Trident at 33.19, indicating that while it is not the most expensive, it still carries a premium. The PEG ratio of 0.75 suggests potential growth, yet the overall valuation metrics signal caution. Notably, R&B Denims has significantly outperformed the Sensex over various periods, including a 50.01% return over the past year, which may contribute to its inflated valuation perception.