Is Dhampur Sugar overvalued or undervalued?

As of 25 September 2025, the valuation grade for Dhampur Sugar has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE Ratio of 17.38, an EV to EBITDA of 10.19, and a Price to Book Value of 0.78, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to its peers, Dhampur Sugar's PE Ratio of 17.38 is significantly lower than EID Parry's 24.34 and Balrampur Chini's 22.87, both of which are categorized as very expensive and fair, respectively. Additionally, Dhampur Sugar's EV to EBITDA of 10.19 is more favorable compared to Balrampur Chini's 18.13. Despite recent underperformance against the Sensex, particularly over the past year with a decline of 38.22% compared to the Sensex's 4.71%, the current valuation metrics suggest that Dhampur Sugar presents a compelling investment opportunity.