Is Darjeeling Ropew overvalued or undervalued?

As of 16 May 2025, the valuation grade for Darjeeling Ropew has moved from very expensive to risky, indicating a significant shift in its market perception. The company appears to be undervalued, particularly when considering its current PE ratio of 10.54, which is notably lower than peers such as Life Insurance with a PE of 12.54 and I R F C at 29.42. Additionally, the EV to EBITDA ratio stands at -10.10, suggesting that the company may be facing challenges in generating earnings before interest, taxes, depreciation, and amortization.
In comparison to its peers, Darjeeling Ropew's PEG ratio of 0.00 highlights a lack of growth expectations, contrasting sharply with Bajaj Finance's PEG of 2.38 and HDFC Life's PEG of 6.02. The company's return on equity (ROE) is also relatively low at 5.73%, further emphasizing its current valuation status. Despite a recent stock return of 4.51% over the past week, which outperformed the Sensex's 1.42%, the overall financial metrics suggest that Darjeeling Ropew is currently undervalued within its industry.