Is DCM overvalued or undervalued?

As of 19 August 2022, the valuation grade for DCM has moved from does not qualify to risky. Based on the analysis, DCM appears to be undervalued given its low PE ratio of 8.73 and a PEG ratio of just 0.03, indicating potential for growth relative to its price. However, the negative ROCE of -7.56% raises concerns about its operational efficiency.
In comparison to its peers, DCM's PE ratio is significantly lower than K P R Mill Ltd, which has a PE of 47.51, and Trident, which stands at 42.6. Despite its current valuation, DCM's high EV to EBITDA of 55.32 suggests that the market may be pricing in higher future earnings potential than currently realized. Notably, while DCM has underperformed the Sensex in the short term, it has shown substantial growth over the past five years with a return of 422.17%, indicating a potential for recovery and value realization.