Is Veerkrupa Jewel overvalued or undervalued?

As of 10 September 2025, the valuation grade for Veerkrupa Jewel has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company is currently considered overvalued. Key ratios include a PE ratio of 12.58, an EV to EBITDA of 13.48, and a Price to Book Value of 0.95, which suggest that despite a relatively low PE ratio, the overall valuation metrics do not favor the stock.
In comparison to its peers, Veerkrupa Jewel's PE ratio is significantly lower than that of Titan Company, which stands at 86.53, and Kalyan Jewellers at 65.4, both classified as expensive. This indicates that while Veerkrupa Jewel is cheaper on a PE basis, the overall valuation remains high relative to its financial performance, as evidenced by a low ROCE of 1.62% and ROE of 1.35%. Furthermore, the company's stock has underperformed the Sensex significantly over the past year, with a decline of 52%, reinforcing the notion that it is overvalued in the current market context.