Is Dai-ichi Karkari overvalued or undervalued?

As of 16 June 2025, the valuation grade for Dai-ichi Karkari has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE ratio of 38.51, an EV to EBITDA of 21.11, and a ROE of 4.18%.
In comparison to its peers, Dai-ichi Karkari's valuation stands out; for instance, Solar Industries has a significantly higher PE ratio of 127.01, while Godrej Industries, which is rated attractive, has a PE of 44.71. This suggests that Dai-ichi Karkari's valuation may not be justified given its lower return metrics, such as a ROCE of only 2.27%. Notably, while the stock has outperformed the Sensex in the short term, it has underperformed over the past year, which further supports the view that it is currently overvalued.