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 undervalued, with a PE ratio of 12.25, an EV to EBIT of 6.91, and an EV to EBITDA of 6.73, which are notably lower than many of its peers. For instance, Bajaj Auto has a PE ratio of 33.38, and Eicher Motors stands at 37.25, highlighting Delta Auto.'s relative attractiveness in the market.
In comparison to its peers, Delta Auto. presents a compelling investment opportunity with a PEG ratio of 0.00, suggesting that the stock is undervalued relative to its growth expectations. The company's return on capital employed (ROCE) is a robust 24.26%, further supporting its strong financial health. Despite a recent decline in stock price compared to the Sensex, which returned 1.29% over the past week, Delta Auto.'s fundamentals indicate it remains a promising choice for investors seeking value in the automobile sector.