Is De Neers Tools overvalued or undervalued?

As of 17 November 2025, De Neers Tools has moved from a fair to an attractive valuation grade, indicating a shift in its perceived value. The company is currently considered undervalued, with a PE ratio of 7.37, an EV to EBITDA ratio of 6.64, and a PEG ratio of 0.07, all suggesting that the stock may be trading at a discount compared to its earnings growth potential.
In comparison to its peers, De Neers Tools stands out with a significantly lower PE ratio than Bharat Forge, which has a PE of 61.18, and Sona BLW Precision, which is valued at 48.13. Additionally, CIE Automotive, another attractive peer, has a PE of 20.38, further reinforcing the undervaluation of De Neers Tools. Despite a challenging year with a YTD return of -53.63% compared to the Sensex's 10.02%, the company's strong ROCE of 21.26% and ROE of 24.21% highlight its operational efficiency and potential for recovery.