Is Damodar Indust. overvalued or undervalued?

As of 1 September 2025, the valuation grade for Damodar Industries has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 10.35, an EV to EBITDA ratio of 10.71, and a PEG ratio of 0.05, which suggests strong growth potential relative to its price.
In comparison to its peers, Damodar Industries stands out with a much lower PE ratio than K P R Mill Ltd, which has a PE of 40.91, and Trident, which has a PE of 32.36. This positions Damodar favorably within the garments and apparels industry. Despite recent stock performance trailing the Sensex, with a year-to-date return of -18.60% compared to the Sensex's 2.85%, the underlying valuation metrics suggest that the stock is currently undervalued and may present a buying opportunity for investors.