Is Delta Industrial overvalued or undervalued?

As of 17 October 2025, Delta Industrial's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company appears overvalued based on its current metrics, with a PE ratio of 94.08, a Price to Book Value of 1.78, and an EV to EBIT of -8.41. These ratios suggest that investors are paying a premium for the stock relative to its earnings and book value.
In comparison with peers, Delta Industrial's PE ratio significantly exceeds that of Bajaj Finserv at 34.94 and Life Insurance at 11.49, both of which are in the same industry. Additionally, while Delta's PEG ratio stands at 0.00, indicating no growth expectations, Bajaj Finance shows a PEG of 2.37, suggesting a more favorable growth outlook. The recent stock performance shows Delta Industrial's one-year return at -17.97%, contrasting with the Sensex's 3.64% gain, further reinforcing the notion that the stock is overvalued in the current market context.