Is R&B Denims overvalued or undervalued?

As of 4 September 2025, R&B Denims' valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 30.30, an EV to EBITDA of 22.09, and a PEG ratio of 0.69. These figures suggest that while the company has strong growth potential, its current pricing may not adequately reflect its earnings capacity.
In comparison to peers, R&B Denims' PE ratio is lower than K P R Mill Ltd's 40.93 but higher than Trident's 33.16, which is rated as fair. Additionally, R&B Denims' EV to EBITDA is also higher than Trident's 15.78, further supporting the notion of overvaluation. Notably, R&B Denims has outperformed the Sensex in various time frames, including a 40.86% return over the past year, which may contribute to investor optimism despite the current valuation concerns.