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 perceived value. However, the company is still considered overvalued based on its financial metrics. The PE ratio stands at 20.88, while the EV to EBITDA ratio is significantly higher at 26.02, suggesting that investors are paying a premium for earnings relative to peers. The ROCE and ROE are notably low at 2.43% and 0.13%, respectively, which raises concerns about the company's profitability and efficiency.
In comparison to its peers, Kajaria Ceramics has a much higher PE ratio of 56.39, while L T Foods, which is rated very attractive, has a PE of 23.67. This indicates that Shiva Granito's valuation is not as favorable when compared to these companies. Additionally, the company's stock has underperformed in the year-to-date period with a return of -24.76%, contrasting sharply with the Sensex's positive return of 2.14%. Overall, Shiva Granito appears to be overvalued in the current market context.