Is Ruby Mills overvalued or undervalued?

As of 16 September 2025, Ruby Mills has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE Ratio of 18.04, an EV to EBITDA of 23.85, and a ROE of 7.16%.
In comparison to its peers, Ruby Mills' PE Ratio is significantly lower than K P R Mill Ltd, which has a PE of 45, and higher than Vardhman Textile, which stands at 14.87. This suggests that while Ruby Mills is priced higher than some competitors, it still lags behind others in terms of valuation. Additionally, the stock has underperformed relative to the Sensex over the past year, with a return of -16.90% compared to the Sensex's -0.73%, reinforcing the notion that Ruby Mills is currently overvalued.