Is Sky Gold & Diam. overvalued or undervalued?

As of 7 July 2025, the valuation grade for Sky Gold & Diamonds has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued. Key ratios include a PE ratio of 35.96, an EV to EBITDA ratio of 26.61, and a PEG ratio of 0.18, which suggests that while the company has strong growth potential, its current valuation may not fully reflect that potential.
In comparison to its peers, Sky Gold & Diamonds has a significantly higher PE ratio than Titan Company, which stands at 97.58, and a lower EV to EBITDA ratio compared to Kalyan Jewellers at 41.88. This positions Sky Gold & Diamonds in a competitive landscape where it is valued fairly relative to its peers. Notably, the company's stock has outperformed the Sensex over the past year, with a return of 76.15% compared to the Sensex's 4.31%, reinforcing the notion that while the stock is fairly valued, it has demonstrated strong performance in the market.