Is Dalmia Bharat overvalued or undervalued?

As of 29 August 2025, Dalmia Bharat's valuation grade has moved from fair to attractive, indicating a positive shift in its market perception. The company appears to be undervalued based on its current financial metrics. Key ratios include a PE Ratio of 11.15, an EV to EBITDA of 7.68, and a PEG Ratio of 0.26, which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to its peers, Dalmia Bharat stands out with a significantly lower PE Ratio than EID Parry, which is at 25.93, and Balrampur Chini at 25.84, both classified as fair or expensive. This positions Dalmia Bharat favorably in the market, especially considering its attractive valuation amidst a competitive landscape. Additionally, while the stock has underperformed over the past year with a return of -15.40% compared to the Sensex's -2.83%, its long-term performance remains strong, with a 5-year return of 165.43%.