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, with a PE ratio of 15.68, an EV to EBITDA of 9.19, and a 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 ratio of 40.06.
Despite the recent decline in stock performance, with a year-to-date return of -40.27% compared to a positive 4.51% for the Sensex, the fundamental ratios suggest that DCG Cables remains a compelling investment opportunity within the electrical cables industry. The company's valuation metrics indicate that it is trading at a discount relative to its peers, reinforcing the view that it is undervalued.