Is De Neers Tools overvalued or undervalued?

As of 17 September 2025, the valuation grade for De Neers Tools has moved from very expensive to expensive, indicating a shift in market perception. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 10.21, an EV to EBITDA of 8.59, and a ROE of 27.05%.
In comparison to peers, Bharat Forge has a significantly higher PE Ratio of 59.13, while CIE Automotive, which is rated attractive, has a PE of 20.34. This suggests that De Neers Tools is trading at a lower valuation than some of its competitors despite its strong return metrics. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -35.83% compared to the Sensex's 7.13%.