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 significant improvement in its perceived value. The company is currently assessed as undervalued. Key ratios include a PE ratio of 16.29, an EV to EBITDA of 9.49, and a ROCE of 13.91%.
In comparison to its peers, DCG Cables stands out with a much lower PE ratio than Polycab India at 48.24 and Havells India at 69, both categorized as very expensive. Additionally, the PEG ratio for DCG Cables is 0.00, which suggests strong growth potential relative to its price. Despite recent underperformance compared to the Sensex, with a year-to-date return of -37.97% versus the Sensex's 5.18%, the fundamental metrics indicate that DCG Cables is positioned well for future growth.