Is DCG Cables overvalued or undervalued?

As of 18 August 2025, the valuation grade for DCG Cables has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be fairly valued based on its current metrics. Key ratios include a PE ratio of 16.36, an EV to EBITDA of 9.53, and a ROCE of 13.91%.
In comparison to peers, DCG Cables stands out with a PE ratio significantly lower than Polycab India at 47.98 and Havells India at 69.04, both of which are considered very expensive. Additionally, DCG Cables' EV to EBITDA is more favorable than KEI Industries, which has a ratio of 34.72. Despite recent underperformance, with a year-to-date return of -38.52% compared to the Sensex's 5.21%, the company's valuation metrics suggest it is fairly valued in the current market context.