Is Dhampur Sugar overvalued or undervalued?

As of 13 October 2025, the valuation grade for Dhampur Sugar has moved from attractive to very attractive, indicating a positive shift in its valuation outlook. The company is currently assessed as undervalued, supported by a PE ratio of 17.48, an EV to EBITDA ratio of 10.22, and a Price to Book Value of 0.78. These ratios suggest that the stock is trading at a discount compared to its earnings and book value.
In comparison to its peers, Dhampur Sugar's PE ratio is significantly lower than that of EID Parry, which stands at 23.68, and Balrampur Chini, with a PE of 22.85. This further reinforces the undervaluation thesis, as Dhampur Sugar offers a more attractive entry point for investors. Despite recent stock performance trailing the Sensex, with a year-to-date return of -13.31% compared to the Sensex's 5.36%, the underlying valuation metrics present a compelling case for potential upside in the future.