Is Darjeeling Ropew overvalued or undervalued?

As of 15 October 2025, the valuation grade for Darjeeling Ropew has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios highlight this concern: the PE ratio stands at an alarming 222.78, while the Price to Book Value is 14.00, both suggesting a high valuation relative to earnings and book value. Furthermore, the EV to EBIT and EV to EBITDA ratios are both negative at -66.65, indicating potential issues with profitability.
In comparison to its peers, Darjeeling Ropew's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 37.84, and Life Insurance, which boasts a much more attractive PE of 11.69. This disparity underscores the overvaluation of Darjeeling Ropew in its sector. Additionally, while the company has shown impressive returns over the past year, outperforming the Sensex significantly with a 314.07% return compared to the Sensex's 0.96%, the current valuation metrics suggest that investors should approach with caution.