Is DCG Cables overvalued or undervalued?

As of 26 August 2025, the valuation grade for DCG Cables has moved from very attractive to attractive. The company is currently considered undervalued, given its PE ratio of 16.02, EV to EBIT of 11.23, and ROCE of 13.91%. In comparison to its peers, Polycab India is classified as very expensive with a PE ratio of 47.79, while R R Kabel is attractive with a PE of 40.06, highlighting DCG Cables' relative value in the market.
Despite recent stock performance showing a significant decline of 40.27% year-to-date compared to a 4.51% increase in the Sensex, the company's fundamentals suggest it is positioned well within its industry. The EV to EBITDA ratio of 9.36 further supports the notion that DCG Cables may be undervalued, especially when compared to peers like Finolex Cables, which has a higher EV to EBITDA of 18.20. Overall, the current valuation reflects an opportunity for investors looking for value in the electrical cables sector.