Is Roni Households overvalued or undervalued?

As of 2 June 2025, Roni Households Ltd. has moved from a grade of "does not qualify" to "very expensive." The company is currently overvalued based on its high valuation metrics, including a PE ratio of 60.11, an EV to EBITDA of 45.45, and a Price to Book Value of 3.81. These ratios suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Roni Households' PE ratio is notably higher than the industry average, indicating that investors are paying much more for each unit of earnings. For instance, while Roni Households has a PEG ratio of 0.00, which typically suggests no growth expectations, its high EV to EBIT ratio of 64.08 further emphasizes the overvaluation. Additionally, the company has underperformed against the Sensex in the short term, with a 1-week return of -3.13%, despite a strong 1-year return of 135.06%. Overall, Roni Households appears to be overvalued in the current market environment.