Is Shree Bhavya overvalued or undervalued?

As of 1 October 2025, the valuation grade for Shree Bhavya has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial ratios, including a PE ratio of 10.83, an EV to EBITDA of 7.86, and a PEG ratio of 0.25. These figures suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Shree Bhavya's valuation stands out favorably against K P R Mill Ltd, which has a PE ratio of 43.71, and Trident, which has a PE ratio of 33.1. This further reinforces the notion that Shree Bhavya is undervalued within the garments and apparels industry. Notably, the company's stock has outperformed the Sensex over the past year, returning 14.50% compared to the Sensex's decline of 3.90%, which adds to the positive valuation narrative.