Is Varyaa Creations overvalued or undervalued?

As of 9 September 2025, Varyaa Creations has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 19.04, an EV to EBIT of 18.98, and a ROCE of 25.04%.
In comparison to its peers, Varyaa Creations stands out with a more favorable valuation; for instance, PC Jeweller has a PE Ratio of 15.02 while Titan Company is significantly more expensive at 86.99. The company's recent stock performance has been challenging, with a year-to-date return of -54.39%, contrasting sharply with the Sensex's gain of 3.79% during the same period. This suggests that despite the attractive valuation, market sentiment may still be weighing on the stock.