Is Delta Industrial overvalued or undervalued?

As of 28 August 2025, Delta Industrial's valuation grade has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be undervalued based on its current metrics. Key ratios include a PE Ratio of 7.56, a Price to Book Value of 1.56, and a troubling EV to EBIT of -8.43, which suggests negative earnings before interest and taxes.
In comparison to its peers, Delta Industrial's valuation stands out; for instance, Life Insurance, which is rated very attractive, has a PE Ratio of 11.27, while Bajaj Finance, rated very expensive, boasts a PE Ratio of 31.28. This stark contrast highlights Delta's relative undervaluation. Additionally, the company's stock has underperformed against the Sensex over the past year, with a return of -43.51% compared to the Sensex's -2.08%, reinforcing the notion that Delta Industrial may be undervalued in the current market environment.