Is Dhampur Sugar overvalued or undervalued?

As of 24 October 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, especially when compared to its peers. Key ratios include a PE ratio of 17.24, an EV to EBITDA of 10.14, and a Price to Book Value of 0.77, 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 valuation stands out; for instance, EID Parry has a PE ratio of 23.79 and an EV to EBITDA of 5.48, categorizing it as very expensive, while Balrampur Chini is rated fair with a PE ratio of 22.38. This reinforces the notion that Dhampur Sugar is undervalued in the current market context. Despite recent underperformance against the Sensex, with a year-to-date return of -14.52% compared to the Sensex's 7.77%, the fundamental metrics suggest that there is significant potential for upside in Dhampur Sugar's valuation.