Is Dhampur Sugar overvalued or undervalued?

As of 18 September 2025, the valuation grade for Dhampur Sugar has moved from very attractive to attractive, indicating a shift in perceived value. The company is currently assessed as undervalued. Key ratios include a PE ratio of 17.89, an EV to EBITDA of 10.35, and a Price to Book Value of 0.80, which suggest that the stock is trading at a reasonable valuation compared to its earnings and book value.
In comparison to its peers, Dhampur Sugar's PE ratio is significantly lower than EID Parry's 24.93 and Balrampur Chini's 24.87, both of which are considered expensive. Additionally, Dhampur Sugar's EV to EBITDA ratio of 10.35 is more favorable than the industry average, further supporting its undervaluation status. Despite recent underperformance against the Sensex over the past year, where Dhampur Sugar returned -34.16% compared to the Sensex's 0.08%, the current valuation metrics position the company as an attractive investment opportunity in the sugar industry.