Is Deem Roll-Tech overvalued or undervalued?

As of 26 August 2025, Deem Roll-Tech's valuation grade has moved from very attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 17.25, an EV to EBITDA of 9.13, and a Price to Book Value of 0.59, which suggest that while the company is not undervalued, it is also not significantly overvalued.
In comparison to its peers, Deem Roll-Tech's PE ratio is notably lower than Bharat Forge's 52.12 and Sona BLW Precision's 46.52, but higher than CIE Automotive's 18.95. This positioning reflects a competitive landscape where Deem Roll-Tech is performing adequately but lacks the growth potential seen in some of its peers. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -30.68%, contrasting sharply with the Sensex's gain of 4.51%, further emphasizing the need for cautious optimism regarding its valuation.