Is RRIL overvalued or undervalued?

As of 11 July 2025, the valuation grade for RRIL has moved from fair to expensive, indicating a shift in its market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 31.71, an EV to EBITDA of 27.74, and a ROE of 6.50%.
When compared to peers, RRIL's PE ratio is significantly higher than PTC India, which is valued attractively at a PE of 9.61, and D.P. Abhushan, which is also expensive at a PE of 29.94. This suggests that RRIL's valuation does not align favorably with its peers in the garments and apparels industry. Furthermore, RRIL's stock has underperformed against the Sensex over the past year, with a return of -21.40% compared to the Sensex's 3.26%, reinforcing the notion that the company may be overvalued at its current price of 17.92.