Is Dhampur Sugar overvalued or undervalued?

As of 8 September 2025, the valuation grade for Dhampur Sugar has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a PE ratio of 17.23, an EV to EBITDA of 10.14, and a Price to Book Value of 0.77, all of which suggest that the stock is trading at a discount compared to its peers.
In comparison to its industry peers, Dhampur Sugar's PE ratio is notably lower than EID Parry's 24.41 and Balrampur Chini's 25.87, both of which are classified as very expensive and fair, respectively. This further supports the conclusion that Dhampur Sugar is undervalued in the current market. Despite recent underperformance relative to the Sensex over various periods, including a 1Y return of -38.14% compared to the Sensex's -0.49%, the company's strong valuation metrics suggest potential for future appreciation.