Is Shree Bhavya overvalued or undervalued?

As of 1 July 2025, Shree Bhavya's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 10.38, an EV to EBIT of 7.95, and an EV to EBITDA of 7.16. These ratios suggest that the stock is trading at a lower valuation compared to its earnings and cash flows.
In comparison to its peers, Shree Bhavya's valuation metrics stand out. For instance, K P R Mill Ltd is categorized as very expensive with a PE ratio of 46.46, while Trident is rated fair with a PE of 42.97. This highlights Shree Bhavya's more attractive valuation relative to its industry peers. Additionally, the company's stock has shown a strong performance over the past year, with a return of 23.53%, significantly outperforming the Sensex's 5.31% return during the same period, reinforcing the notion of its undervaluation.