Is Damodar Indust. overvalued or undervalued?

As of 16 September 2025, the valuation grade for Damodar Industries has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, particularly when considering its PE ratio of 10.85, a price to book value of 0.59, and an EV to EBITDA ratio of 10.87. These figures suggest that the stock is trading at a discount compared to its earnings and asset values.
In comparison to its peers, Damodar Industries stands out with a significantly lower PE ratio than K P R Mill Ltd, which is at 45, and Trident, which has a PE of 34.64. Additionally, the PEG ratio of 0.05 further emphasizes the potential for growth relative to its price, especially when contrasted with Vardhman Textile's PEG of 0.92. Despite recent underperformance, with a year-to-date return of -15.64% compared to the Sensex's 5.43%, the valuation metrics suggest that Damodar Industries may present a compelling investment opportunity moving forward.