Is Dalmia Bharat overvalued or undervalued?

As of 17 September 2025, Dalmia Bharat's valuation grade has moved from fair to attractive, indicating a positive shift in its market position. The company appears to be undervalued, supported by a PE ratio of 11.03, an EV to EBITDA of 7.60, and a PEG ratio of 0.25, which suggests strong growth potential relative to its price.
In comparison to its peers, Dalmia Bharat's valuation metrics stand out; for instance, EID Parry is considered very expensive with a PE ratio of 24.98, while Balrampur Chini, rated as fair, has a significantly higher PE of 24.91. This positions Dalmia Bharat favorably within the industry, particularly given its lower EV to Sales ratio of 0.86. Despite a recent decline in stock performance relative to the Sensex over the past year, the long-term returns of 173.15% over five years reinforce the attractiveness of its current valuation.