Is Shine Fashions overvalued or undervalued?

As of 7 May 2025, the valuation grade for Shine Fashions (India) Ltd. has moved from risky to very attractive, indicating a significant improvement in its valuation outlook. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 16.31, an EV to EBITDA of 11.35, and an impressive ROCE of 92.80%.
In comparison to its peers, Shine Fashions stands out with a PEG ratio of 0.24, which is considerably lower than many competitors, suggesting strong growth potential relative to its price. For instance, while Shine Fashions has a PE ratio of 16.31, other companies in the industry may have higher ratios, indicating that Shine is trading at a discount. Notably, the company's stock has outperformed the Sensex over the past year, returning 133.2% compared to the Sensex's 7.55%, reinforcing the notion that it is undervalued in the current market.