Is Damodar Indust. overvalued or undervalued?

As of 1 October 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 assessed as undervalued, particularly when considering its key ratios: a PE ratio of 10.14, an EV to EBITDA of 10.65, and a PEG ratio of 0.05. These figures suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Damodar Industries stands out with a lower PE ratio than K P R Mill Ltd, which is very expensive at 43.71, and Trident, which is fairly valued at 33.1. Additionally, the company's EV to Sales ratio of 0.66 further emphasizes its undervaluation relative to the industry. Despite recent underperformance against the Sensex, particularly over the past year with a decline of 23.78% compared to a 3.64% rise in the index, the current valuation metrics indicate that Damodar Industries presents a compelling investment opportunity.