Is Senco Gold overvalued or undervalued?

As of 9 June 2025, Senco Gold's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 38.44, while the EV to EBITDA ratio is at 20.65, both of which are significantly higher than some of its peers. For instance, Titan Company has a PE ratio of 94.04, but other competitors like P N Gadgil Jewellers are more reasonably valued at 36.31.
In comparison to its peers, Senco Gold's PEG ratio is notably at 0.00, which suggests that the stock may not be growing in line with its price, further supporting the overvaluation stance. Additionally, the company's recent performance has been underwhelming, with a year-to-date return of -30.46% compared to a 5.51% gain in the Sensex, reflecting a lack of investor confidence. Overall, the current valuation metrics and peer comparisons suggest that Senco Gold is overvalued in the current market environment.