Is Varyaa Creations overvalued or undervalued?

As of 30 June 2025, Varyaa Creations has moved from a grade of "does not qualify" to "expensive." The company's current valuation is considered overvalued. Key ratios include a PE ratio of 23.74, an EV to EBIT of 23.68, and a ROCE of 25.04%. In comparison to peers, Titan Company has a significantly higher PE ratio of 98.06, while PC Jeweller, rated as very attractive, has a much lower PE of 13.96.
The valuation metrics indicate that Varyaa Creations is trading at a premium relative to its peers, which suggests it may not be justified given its performance and returns. The stock has underperformed against the Sensex, with a year-to-date decline of 43.12% compared to the Sensex's gain of 7.00%, reinforcing the view that the company is overvalued in the current market context.