Is DCG Cables overvalued or undervalued?

As of 22 August 2025, the valuation grade for DCG Cables has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 16.29, an EV to EBITDA ratio of 9.49, and a ROCE of 13.91%. These ratios suggest that DCG Cables is performing well relative to its earnings and capital efficiency.
In comparison to its peers, DCG Cables stands out with a significantly lower PE ratio than Polycab India, which has a PE of 48.24, and Havells India, which has a PE of 69. This positions DCG Cables favorably within its industry, especially considering its attractive valuation metrics. Despite recent stock performance lagging behind the Sensex, with a year-to-date decline of 37.97% compared to the Sensex's gain of 5.18%, the underlying fundamentals suggest that DCG Cables presents a compelling investment opportunity at its current price of 72.70.