Is Shiva Granito overvalued or undervalued?

As of 29 August 2025, the valuation grade for Shiva Granito has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 20.88, an EV to EBITDA of 26.02, and a ROCE of only 2.43%, which suggests that the company is not generating sufficient returns relative to its capital employed.
In comparison to its peers, Kajaria Ceramics has a significantly higher PE ratio of 56.39 and an EV to EBITDA of 29.63, while L T Foods, which is rated very attractive, has a PE ratio of 23.67 and an EV to EBITDA of 15.77. This highlights that Shiva Granito's valuation is not justified when compared to better-performing companies in the same industry. Additionally, despite a positive one-year stock return of 8.97%, the company has underperformed the Sensex year-to-date, which further reinforces the notion that it is currently overvalued.