Is Dalmia Bharat overvalued or undervalued?

As of 13 October 2025, Dalmia Bharat's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 10.85, an EV to EBITDA of 7.48, and a PEG ratio of 0.25, all suggesting that the stock is trading at a discount compared 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 23.68, and Balrampur Chini, which has a PE of 22.85, highlighting its relative attractiveness. Additionally, the company’s EV to Sales ratio of 0.85 further reinforces its undervaluation compared to the industry. Despite recent underperformance against the Sensex, with a one-year return of -31.72% versus the Sensex's 1.16%, the long-term outlook remains promising given its strong historical performance over five years, where it returned 183.20%.