Is Dai-ichi Karkari overvalued or undervalued?

As of 11 August 2025, the valuation grade for Dai-ichi Karkari has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, Dai-ichi Karkari appears to be undervalued. The company has a PE ratio of 30.06, an EV to EBITDA of 16.40, and a PEG ratio of 0.10, which suggests that it is trading at a lower valuation compared to its growth prospects.
In comparison to its peers, Dai-ichi Karkari's valuation metrics stand out, particularly against Solar Industries, which has a PE ratio of 106.72, and Gujarat Fluoroch with a PE of 60.45, both of which are considered very expensive. Additionally, Godrej Industries, another attractive peer, has a PE of 37.53, further supporting the notion that Dai-ichi Karkari is undervalued in its sector. Notably, the company's stock has underperformed against the Sensex, with a year-to-date decline of 23.50%, contrasting sharply with the Sensex's gain of 3.15%, reinforcing the potential for a valuation correction.