Is Shiva Granito overvalued or undervalued?

As of 9 September 2025, the valuation grade for Shiva Granito has moved from expensive to very expensive. This indicates a significant concern regarding its current valuation. The company appears overvalued, with a PE ratio of 18.77, an EV to EBITDA ratio of 23.91, and a ROCE of only 2.43%.
In comparison to its peers, Kajaria Ceramics has a much higher PE ratio of 57.82, while L T Foods, rated very attractive, has a PE of 24.66, suggesting that Shiva Granito's valuation is not justified relative to these competitors. Additionally, the stock has underperformed against the Sensex, particularly in the last month with a decline of 27.74% compared to a 1.56% increase in the index. Overall, the combination of high valuation ratios and poor performance relative to peers and the market indicates that Shiva Granito is overvalued.