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 significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of 17.24, an EV to EBITDA of 10.14, and a Price to Book Value of 0.77. These ratios suggest that the stock is trading at a discount compared to its earnings and asset value.
In comparison to its peers, Dhampur Sugar's valuation stands out; for instance, EID Parry is deemed very expensive with a PE ratio of 23.79, while Balrampur Chini is rated fair with a PE of 22.38. This positions Dhampur Sugar favorably within the industry, especially given its lower EV to Sales ratio of 0.85 compared to the higher ratios of its peers. Despite recent underperformance against the Sensex, with a year-to-date return of -14.52% versus the Sensex's 7.77%, the current valuation metrics indicate that Dhampur Sugar presents a compelling investment opportunity.