Is Delta Industrial overvalued or undervalued?

As of 17 October 2025, Delta Industrial's valuation grade has moved from risky to expensive. The company is currently overvalued, as indicated by a PE ratio of 94.08, an EV to EBIT of -8.41, and a ROE of only 1.90%. In comparison, its peers such as Bajaj Finance and Bajaj Finserv have PE ratios of 38.21 and 34.94, respectively, which highlights the significant premium at which Delta Industrial is trading.
The company's financial metrics suggest a lack of profitability, with a negative EV to EBIT and a ROCE of -2.34%. This raises concerns about its sustainability and growth potential. While Delta Industrial has outperformed the Sensex on a year-to-date basis with a return of 11.11% compared to the Sensex's 7.44%, the overall valuation remains unjustified given the high PE ratio and low return metrics relative to its peers.