Is Damodar Indust. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Damodar Industries has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 10.35, a Price to Book Value of 0.57, and an EV to EBITDA of 10.71, all of which suggest that the stock is trading at a significant discount compared to its earnings and book value.
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 40.93 and is categorized as very expensive, and Trident, which has a PE of 33.16 and is rated as fair. Additionally, the company's PEG ratio of 0.05 further emphasizes its undervaluation relative to the growth expectations in the market. Despite recent underperformance compared to the Sensex, with a year-to-date return of -19.02% versus the Sensex's 3.30%, the fundamental metrics suggest a compelling investment opportunity in Damodar Industries.