Is Stanley Lifesty. overvalued or undervalued?

As of 23 September 2025, the valuation grade for Stanley Lifestyle has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its high PE ratio of 54.30, an EV to EBIT of 47.85, and an EV to Sales ratio of 4.26. These figures suggest that the stock is trading at a premium compared to its earnings and sales, which raises concerns about its sustainability at current price levels.
In comparison to peers, Stanley Lifestyle's PE ratio significantly exceeds that of Altius Telecom, which stands at 54.74, and is markedly higher than Mindspace Business's PE of 53.02. This disparity highlights that while Stanley Lifestyle is positioned within a competitive market, its valuation metrics are not justified by its performance, especially given its ROE of 6.27% and ROCE of 7.29%. Additionally, the company's stock has underperformed relative to the Sensex over the past year, with a decline of 36.58% compared to a slight drop of 3.33% for the index, further reinforcing the view that it is overvalued at this time.