Is DIC India overvalued or undervalued?

As of 14 August 2025, the valuation grade for DIC India has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios include a PE ratio of 35.21, an EV to EBITDA of 15.47, and a PEG ratio of 1.92, all of which suggest that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, DIC India's valuation appears high, especially when juxtaposed with Solar Industries, which has a PE ratio of 108.29, and Godrej Industries, which is rated attractive with a PE of 39.5. The disparity in valuation metrics highlights DIC India's overvaluation relative to industry standards. Additionally, while DIC India has shown a positive return of 1.85% over the past week, its year-to-date performance is down 10.45%, contrasting with a 3.15% gain in the Sensex, further reinforcing the notion that the stock may not be justified at its current price level.