Is De Neers Tools overvalued or undervalued?

As of 18 November 2025, the valuation grade for De Neers Tools has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a PE ratio of 7.22, an EV to EBITDA of 6.85, and a PEG ratio of 0.07. These ratios suggest that while the company is not undervalued, it is also not significantly overvalued compared to its peers.
In comparison to its industry peers, De Neers Tools' PE ratio is markedly lower than Bharat Forge at 61.77 and Sona BLW Precision at 48.52, both of which are considered expensive. However, it is also higher than some attractive peers like CIE Automotive, which has a PE of 20.1. The recent stock performance has been poor, with a year-to-date decline of 54.6%, contrasting sharply with the Sensex's gain of 9.58% during the same period, further reinforcing the notion that the stock is fairly valued rather than undervalued.