Is Varyaa Creations overvalued or undervalued?

As of 24 October 2025, Varyaa Creations' valuation grade has moved from attractive to fair, indicating a shift in its market position. The company is currently fairly valued, with a PE ratio of 47.90, an EV to EBIT ratio of 19.97, and a Price to Book Value of 0.85. Compared to its peers, Varyaa Creations stands out with a lower EV to Sales ratio of 0.64, while Titan Company and Kalyan Jewellers are considered expensive with PE ratios of 88.77 and 63.81, respectively.
Despite the fair valuation, Varyaa Creations has shown a significant decline in stock performance, with a year-to-date return of -51.81%, contrasting sharply with the Sensex's gain of 7.77% during the same period. This underperformance, coupled with low ROCE of 3.79% and ROE of 1.78%, suggests potential challenges ahead, even as the company maintains a competitive edge in its valuation metrics within the industry.