Is R&B Denims overvalued or undervalued?

As of 9 September 2025, R&B Denims has moved from an expensive to a very expensive valuation grade. The company is currently overvalued, with a PE ratio of 31.86, a Price to Book Value of 5.33, and an EV to EBITDA ratio of 23.13. These figures indicate that the stock is trading at a premium compared to its earnings and book value, suggesting that investors are paying significantly more for each unit of earnings and equity.
In comparison to its peers, R&B Denims' valuation appears high; for instance, K P R Mill Ltd has a PE ratio of 41.33, while Trident is rated fair with a PE of 32.95. Notably, Vardhman Textile, which is also rated fair, has a much lower PE ratio of 13.9, highlighting the disparity in valuation across the sector. Additionally, R&B Denims has outperformed the Sensex significantly over various periods, with a year-to-date return of 30.28% compared to the Sensex's 3.79%, reinforcing the notion that the stock is currently overvalued despite its strong recent performance.