Is Diksat Transworl overvalued or undervalued?

As of 3 June 2025, the valuation grade for Diksat Transworl has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 227.71, an EV to EBITDA ratio of 231.37, and a Price to Book Value of 9.03, all of which are substantially higher than industry norms.
In comparison to its peers, Diksat Transworl's valuation metrics stand out unfavorably; for instance, its PE ratio is significantly higher than the average for the media and entertainment sector, which typically hovers around 15-20. Additionally, the company's ROCE and ROE are notably low at 0.14% and 0.24%, respectively, further supporting the conclusion of overvaluation. Recent stock performance has also lagged behind the Sensex, with a year-to-date return of -6.28% compared to the Sensex's 5.60%, reinforcing concerns about its current valuation.