Is Deem Roll overvalued or undervalued?

As of 27 June 2025, the valuation grade for Deem Roll has moved from attractive to very attractive. Based on the analysis, the company appears to be undervalued. Key ratios include a PE ratio of 16.73, an EV to EBITDA of 8.85, and a Price to Book Value of 0.58, which suggest that the stock is trading at a significant discount relative to its earnings and book value.
In comparison to its peers, Deem Roll's PE ratio of 16.73 is notably lower than Bharat Forge's 60.58 and Sona BLW Precision's 48.41, indicating a more favorable valuation. Additionally, the EV to EBITDA ratio of 8.85 is also competitive when compared to CIE Automotive's 12.28, reinforcing the notion that Deem Roll is undervalued in the current market. Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -32.76% compared to the Sensex's 8.43%, the underlying valuation metrics suggest a compelling investment opportunity.