Is Dhampur.Spl.Sug. overvalued or undervalued?

As of 4 July 2025, the valuation grade for Dhampur.Spl.Sug. has moved from very expensive to expensive, indicating a shift towards a less extreme valuation. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 30.52, an EV to EBITDA of 22.68, and a PEG ratio of 0.19, which suggests that despite the high price relative to earnings, the growth potential may not justify this valuation.
In comparison with peers, EID Parry is categorized as very expensive with a PE ratio of 31.15, while Balrampur Chini is rated as fair with a PE of 27.33. This positions Dhampur.Spl.Sug. in a relatively high valuation bracket within the industry. Notably, the stock has outperformed the Sensex over the past three years, returning 157.87% compared to the Sensex's 56.73%, which may reflect investor sentiment despite the current overvaluation.