Is Roni Households overvalued or undervalued?

As of 8 August 2025, Roni Households has moved from a valuation grade of very expensive to risky. The company's current valuation suggests it is overvalued, particularly given its high PE ratio of 63.21, an EV to EBIT of 67.18, and an EV to EBITDA of 47.65. These ratios indicate that the stock is priced significantly higher than its earnings and cash flow generation capabilities would justify.
In comparison to its peers, Roni Households' PE ratio is substantially higher than that of PTC India, which is very attractive at 8.33, and D-Link India, which is attractive at 16.9. Additionally, while Roni's PEG ratio stands at 0.00, indicating no growth expectations, peers like D.P. Abhushan and MSTC also show lower valuations despite being classified as expensive or very expensive. The stock has outperformed the Sensex over the past year with a return of 84.53% compared to the Sensex's 1.23%, but this does not mitigate the concerns regarding its current overvaluation.