Is Sun Retail overvalued or undervalued?

Oct 26 2025 08:07 AM IST
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As of October 24, 2025, Sun Retail is considered overvalued with a PE ratio of 44.61 and low returns, underperforming the Sensex by -40.26% year-to-date, while its peers are even more expensive.
As of 24 October 2025, the valuation grade for Sun Retail has moved from fair to expensive. The company is currently overvalued, with a PE ratio of 44.61, an EV to EBIT of 12.22, and an EV to Sales ratio of 0.28. Compared to its peers, Avenue Supermarts and Trent are both categorized as very expensive, with PE ratios of 100.36 and 107.48, respectively, indicating that Sun Retail's valuation is significantly higher than some of its competitors in the trading and distributors industry.

The company's financial performance shows a low ROCE of 0.51% and an ROE of 0.96%, which further supports the overvaluation assessment. Additionally, Sun Retail's stock has underperformed compared to the Sensex, with a year-to-date return of -40.26% versus the Sensex's 7.77%. This trend reinforces the notion that the stock is not only overvalued but also struggling in the current market environment.
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