Is Darjeeling Ropew overvalued or undervalued?

As of 10 October 2025, the valuation grade for Darjeeling Ropew has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.86, a Price to Book Value of 15.26, and an EV to EBIT of -72.68. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about sustainability.
In comparison to its peers, Darjeeling Ropew's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a much more attractive PE of 11.65. The stark contrast in these ratios highlights the overvaluation of Darjeeling Ropew within the Non-Banking Financial Company (NBFC) sector. Additionally, despite the company's impressive stock performance, with a 1Y return of 378.55% compared to the Sensex's 1.09%, the current valuation metrics indicate that the stock may not be justified at its current price of 72.50.