Is Veerkrupa Jewel overvalued or undervalued?

As of 19 September 2025, the valuation grade for Veerkrupa Jewel has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 12.45, an EV to EBIT of 13.35, and a Price to Book Value of 0.94.
When compared to peers, Veerkrupa Jewel's valuation stands out as expensive, especially against Titan Company, which has a PE ratio of 82.89, and Kalyan Jewellers with a PE of 66.02. Additionally, while Veerkrupa Jewel has a PEG ratio of 0.00, indicating no growth expectations, its return metrics such as ROCE at 1.62% and ROE at 1.35% suggest inefficiency relative to its cost of capital. The stock has underperformed significantly against the Sensex, with a year-to-date return of -34.93% compared to the Sensex's 5.74%, further supporting the view that the stock is overvalued.