Is S D Retail overvalued or undervalued?

As of 14 November 2025, S D Retail's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 22.04, an EV to EBITDA of 12.37, and a ROCE of 11.92%. In comparison to peers, K P R Mill Ltd is classified as very expensive with a PE ratio of 43.91, while Arvind Ltd, also very attractive, has a lower PE of 21.55.
Despite the positive valuation indicators, S D Retail's stock has underperformed relative to the Sensex, with a year-to-date return of -41.39% compared to the Sensex's 9.58%. This discrepancy suggests that the market may not fully recognize the company's intrinsic value at this time, reinforcing the conclusion that S D Retail is undervalued.