Is Delta Industrial overvalued or undervalued?

Oct 19 2025 08:07 AM IST
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As of October 17, 2025, Delta Industrial is considered overvalued with a high PE ratio of 94.08, negative EV to EBIT and EBITDA, and low ROCE and ROE, despite outperforming the Sensex year-to-date.
As of 17 October 2025, the valuation grade for Delta Industrial has moved from risky to expensive. The company is currently overvalued, as indicated by its high PE ratio of 94.08 and a negative EV to EBIT and EV to EBITDA of -8.41. Additionally, the return on capital employed (ROCE) stands at -2.34%, and the return on equity (ROE) is only 1.90%, which further supports the overvaluation assessment.

In comparison to its peers, Delta Industrial's valuation metrics are significantly higher than those of Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, which boasts a much lower PE ratio of 11.49. The company’s recent stock performance shows a year-to-date return of 11.11%, outperforming the Sensex's 7.44% in the same period, but this does not mitigate the overall overvaluation indicated by its financial ratios.
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