Is Dalmia Bharat overvalued or undervalued?

As of 6 November 2025, Dalmia Bharat's valuation grade has moved from attractive to expensive, indicating a shift in its market position. The company is currently overvalued, with a PE ratio of 10.04, an EV to EBITDA of 6.92, and a Price to Book Value of 0.90. In comparison to its peers, EID Parry is categorized as very expensive with a PE of 23.75, while Balrampur Chini is considered fair with a PE of 21.57, highlighting that Dalmia Bharat is priced higher relative to its performance metrics.
The company's recent stock performance has been underwhelming, with a year-to-date return of -7.26%, contrasting sharply with the Sensex's gain of 6.62% during the same period. This underperformance, coupled with its current valuation metrics, reinforces the conclusion that Dalmia Bharat is overvalued in the current market environment.