Is Roni Households overvalued or undervalued?

As of 26 August 2025, the valuation grade for Roni Households has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios. The PE ratio stands at 61.49, while the EV to EBITDA ratio is 46.16, and the Price to Book Value is 3.75. These figures indicate a significant premium compared to peers such as Lloyds Enterprises, which has a PE ratio of 39.01, and D.P. Abhushan, with a PE ratio of 28.76.
In comparison to the broader market, Roni Households has shown strong performance over the past year, with a stock return of 88.95%, contrasting sharply with the Sensex's decline of 1.12%. However, despite this impressive return, the company's valuation metrics suggest that it is not a compelling investment at current levels, reinforcing the conclusion that Roni Households is overvalued.