Is U. H. Zaveri overvalued or undervalued?

As of 6 November 2025, the valuation grade for U. H. Zaveri has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently deemed overvalued, with a staggering PE ratio of 625.91, an EV to EBIT of 45.44, and a price to book value of 0.19, which suggests that the market is pricing the stock excessively high relative to its earnings and assets.
In comparison to its peers, U. H. Zaveri's valuation metrics stand out unfavorably. For instance, Titan Company has a PE ratio of 81.21 and an EV to EBITDA of 57.61, while Kalyan Jewellers shows a PE of 66.06 and an EV to EBITDA of 34.15. These figures highlight that U. H. Zaveri's valuation is significantly higher than its competitors, raising concerns about its sustainability. Although the company's stock has outperformed the Sensex over the past year with a return of 48.76% compared to the Sensex's 3.65%, the current valuation levels suggest that investors should proceed with caution.