Is Roni Households overvalued or undervalued?

As of 12 August 2025, Roni Households has moved from a risky valuation grade to very expensive. The company is currently overvalued, with a PE ratio of 63.10, an EV to EBIT of 66.69, and an EV to EBITDA of 47.30. Compared to its peers, Roni Households' valuation metrics are significantly higher; for instance, Lloyds Enterprises has a PE ratio of 169.02, while PTC India, categorized as very attractive, has a much lower PE of 8.86.
The company's return on capital employed (ROCE) stands at a mere 4.70%, and the return on equity (ROE) is only 3.96%, which further indicates inefficiency relative to its high valuation. While Roni Households has shown a strong one-year stock return of 84.2% compared to the Sensex's 0.74%, this performance does not justify its current valuation, reinforcing the conclusion that the stock is overvalued.