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 deterioration in its valuation outlook. The company is currently deemed overvalued. Key ratios include a PE Ratio of 72.86, a Price to Book Value of 15.26, and a ROCE of 6.53%.
In comparison to its peers, Bajaj Finance has a PE Ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance shows a more attractive PE of 11.65 and an EV to EBITDA of 9.08. The stark contrast in these ratios suggests that Darjeeling Ropew is not only overvalued relative to its peers but also lacks the financial performance metrics to justify its high valuation. Notably, the company's stock has significantly outperformed the Sensex, with a year-to-date return of 79.72% compared to the Sensex's 5.58%, which may reflect speculative trading rather than fundamental strength.