Is Delta Industrial overvalued or undervalued?

As of 15 October 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 overvalued, given its high PE ratio of 88.09 and negative EV to EBIT and EV to EBITDA ratios of -7.88, which suggest underlying profitability issues. Additionally, the ROCE stands at -2.34%, further highlighting the challenges the company faces in generating returns on capital.
In comparison to its peers, Delta Industrial's valuation metrics are starkly higher than those of Bajaj Finance, which has a PE ratio of 37.84, and Life Insurance, which boasts a much lower PE of 11.69. This disparity underscores the overvaluation of Delta Industrial relative to its industry peers. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a 1-year return of -23.24% compared to the Sensex's 0.96%, reinforcing the notion that Delta Industrial is not only overvalued but also struggling to deliver shareholder value.