Is SG Mart overvalued or undervalued?

As of 22 July 2025, the valuation grade for SG Mart has moved from expensive to fair, indicating a shift in perception regarding its market value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 44.27, an EV to EBITDA of 45.69, and a PEG ratio of 0.84, which suggests that while the stock is not undervalued, it is not excessively priced either.
In comparison to its peers, SG Mart's PE ratio is higher than Trident's 41.86 but lower than K P R Mill Ltd's 50.78, which is categorized as very expensive. Additionally, Vardhman Textile, also fairly valued, has a significantly lower PE ratio of 15.88. Notably, SG Mart has outperformed the Sensex over the past three years with a remarkable return of 1665.84%, contrasting with the Sensex's 46.57% during the same period. This performance may reinforce the argument for its fair valuation in the current market context.