Is DCM Shriram overvalued or undervalued?

As of 29 October 2025, DCM Shriram's valuation grade has moved from very expensive to fair, indicating a significant adjustment in its perceived value. The company is currently fairly valued, with a PE ratio of 29.10, an EV to EBITDA ratio of 14.71, and a PEG ratio of 0.79, suggesting that its growth prospects are reasonably priced relative to its earnings.
In comparison to its peers, DCM Shriram's PE ratio is notably lower than that of Adani Enterprises at 85.93 and SRF at 55.47, both of which are classified as expensive. Additionally, Tata Chemicals, which is rated attractive, has a PE of 52.29, further highlighting DCM Shriram's relative valuation position. The company has outperformed the Sensex significantly over the past year, with a return of 31.77% compared to the Sensex's 5.76%, reinforcing the notion that it is currently fairly valued in the market.