Is SG Mart overvalued or undervalued?

As of 5 June 2025, SG Mart's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued based on its high PE ratio of 46.65, an EV to EBIT of 49.56, and an EV to EBITDA of 48.37. Compared to its peers, SG Mart's valuation stands out, particularly against K.P.R. Mill Ltd., which has a PE of 47.51 and Trident Ltd., which is valued fairly with a PE of 42.6.
The analysis reveals that SG Mart's financial ratios suggest it is overvalued in the current market environment. While the company has shown strong returns over the long term, its recent performance has lagged behind the Sensex, particularly over the past year, where it reported a -13.10% return compared to the Sensex's 7.57%. This discrepancy reinforces the notion that SG Mart's current valuation may not be justified given its financial metrics and peer comparisons.