Is Damodar Indust. overvalued or undervalued?

As of 22 September 2025, the valuation grade for Damodar Industries has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently assessed as undervalued, particularly when considering its PE ratio of 10.47, a price-to-book value of 0.57, and an EV to EBITDA of 10.75. These ratios suggest that the stock is trading at a discount compared to its earnings and asset values.
In comparison to peers, Damodar Industries stands out with a much lower PE ratio than K P R Mill Ltd, which is at 46.89, and a more favorable PEG ratio of 0.05 compared to Vardhman Textile's 0.89. This positions Damodar as a more attractive investment in the garments and apparel sector. Despite recent underperformance relative to the Sensex, with a year-to-date return of -18.56% compared to the Sensex's 5.15%, the fundamental metrics suggest that the company is undervalued and presents a compelling opportunity for investors.