Is Cyient DLM overvalued or undervalued?

As of 20 October 2025, the valuation grade for Cyient DLM has moved from fair to attractive, indicating a shift in perception regarding its worth. The company is currently considered undervalued, especially when compared to its peers in the industrial manufacturing sector. Cyient DLM has a PE ratio of 44.77, an EV to EBITDA of 10.31, and a PEG ratio of 3.85, which, while relatively high, suggest potential for growth when assessed against its valuation grade.
In comparison, Kaynes Technology is deemed very expensive with a PE ratio of 144.89, while Honeywell Auto also falls into the very expensive category with a PE ratio of 62.66. This highlights that Cyient DLM is positioned more favorably in terms of valuation metrics. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -31.06% compared to the Sensex's 7.97%, reinforcing the notion that Cyient DLM may be undervalued in the current market context.