Is Roni Households overvalued or undervalued?

As of 8 August 2025, Roni Households' valuation grade has moved from very expensive to risky, indicating a significant shift in its market perception. The company appears to be overvalued, given its high PE ratio of 63.21, an EV to EBIT of 67.18, and an EV to EBITDA of 47.65, which are substantially higher than many of its peers. Notably, Lloyds Enterprises, classified as very expensive, has a PE ratio of 186.85, while PTC India, which is very attractive, has a PE ratio of just 8.33.
In comparison to its peers, Roni Households' financial metrics suggest that it is not justified at its current price of 55.00. The company's return on capital employed (ROCE) stands at a mere 4.76%, and its return on equity (ROE) is 4.12%, both of which are relatively low. While Roni Households has outperformed the Sensex over the past year with a return of 84.53% compared to the Sensex's 1.23%, the valuation metrics indicate that the stock is not supported by its financial performance, reinforcing the conclusion that it is overvalued.