Is Delta Auto. overvalued or undervalued?

As of 5 September 2025, the valuation grade for Delta Auto. has moved from does not qualify to very attractive, indicating a significant improvement in its investment appeal. The company is currently assessed as undervalued, especially when compared to its peers. Delta Auto. has a PE ratio of 12.25, an EV to EBIT ratio of 6.91, and an ROCE of 24.26%, which are all favorable indicators of its financial health.
In comparison to its peers, Delta Auto. stands out with a much lower PE ratio than Bajaj Auto at 33.38 and Eicher Motors at 37.25, both of which are considered expensive. Additionally, Delta's EV to EBITDA ratio of 6.73 is significantly lower than that of its peers, reinforcing its undervalued status. Despite recent stock returns lagging behind the Sensex, with a 1-month decline of 12.42% compared to a slight gain of 0.36% for the index, the overall financial metrics suggest that Delta Auto. presents a compelling investment opportunity.