Is Veerkrupa Jewel overvalued or undervalued?

As of 9 September 2025, the valuation grade for Veerkrupa Jewel has moved from expensive to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued. Key ratios include a PE ratio of 12.97, an EV to EBITDA of 13.87, and a ROCE of just 1.62%, which suggests that the company is not generating sufficient returns relative to its capital employed.
In comparison to its peers, Veerkrupa Jewel's valuation metrics are starkly lower than those of Titan Company, which has a PE ratio of 86.99, and Kalyan Jewellers, with a PE of 64.61. This highlights the disparity in valuation, as both competitors are classified as expensive while Veerkrupa Jewel is categorized as very expensive. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -32.19%, contrasting sharply with the Sensex's positive return of 3.79% during the same period.