Is Veerkrupa Jewel overvalued or undervalued?

As of 19 September 2025, the valuation grade for Veerkrupa Jewel has moved from very expensive to expensive, indicating a slight improvement in perceived value but still reflecting a high valuation. The company is currently considered overvalued. 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.
In comparison to its peers, Veerkrupa Jewel's PE ratio is significantly lower than Titan Company, which has a PE of 82.89, and Kalyan Jewellers at 66.02, both of which are considered expensive. Despite this, the company's low ROCE of 1.62% and ROE of 1.35% suggest inefficiencies in generating returns relative to its equity. Additionally, while the stock has underperformed significantly against the Sensex over the past year, dropping 50.52% compared to a slight decline in the Sensex, this trend reinforces the notion that the stock remains overvalued in its current state.