Is Varyaa Creations overvalued or undervalued?

As of 24 October 2025, Varyaa Creations has moved from an attractive to a fair valuation grade. The company is currently considered overvalued based on its high PE ratio of 47.90, which significantly exceeds the industry average. Additionally, the EV to EBIT and EV to EBITDA ratios are both at 19.97, indicating a premium valuation compared to its peers. The return on capital employed (ROCE) stands at a low 3.79%, and the return on equity (ROE) is just 1.78%, further suggesting that the company's profitability does not justify its current market price.
In comparison to its peers, Varyaa Creations' valuation appears less favorable, especially when looking at Titan Company with a PE ratio of 88.77 and Kalyan Jewellers at 63.81. While some peers like PC Jeweller are rated very attractive with a PE of 13.23, Varyaa's high valuation ratios indicate it is not aligned with the overall market sentiment. Furthermore, the company's stock has underperformed significantly, with a year-to-date return of -51.81% compared to a 7.77% return for the Sensex, reinforcing the notion that Varyaa Creations is currently overvalued.