Is Delta Industrial overvalued or undervalued?

As of 23 October 2025, Delta Industrial's valuation grade has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, with a PE ratio of 92.94, an EV to EBIT of -8.31, and a ROE of only 1.90%. These ratios suggest that the market has priced the stock at a premium despite its poor profitability metrics.
In comparison to its peers, Delta Industrial's PE ratio is substantially higher than Bajaj Finance's 39.07 and Life Insurance's 11.68, both of which are in better valuation categories. Additionally, Delta's negative EV to EBITDA ratio further underscores its financial challenges compared to more stable companies in the sector. While Delta Industrial has shown a strong 5-year return of 675.5%, it has underperformed the Sensex over the past year, which may reinforce concerns about its current valuation.