Is Dalmia Bharat overvalued or undervalued?

As of 18 September 2025, Dalmia Bharat's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued based on its financial metrics. The PE ratio stands at 11.16, the EV to EBITDA ratio is 7.69, and the PEG ratio is notably low at 0.26, suggesting that the stock may be undervalued relative to its growth potential.
In comparison to its peers, Dalmia Bharat's valuation appears more reasonable, especially when contrasted with EID Parry, which is considered very expensive with a PE ratio of 24.93, and Balrampur Chini, which is also fair but has a significantly higher PE of 24.87. While Dalmia Bharat has underperformed the Sensex over the past year with a return of -20.65% compared to the Sensex's 0.08%, its long-term performance over five years shows a robust return of 177.44%, reinforcing its potential as a solid investment in the sugar industry.