Is Diksat Transworl overvalued or undervalued?

As of 12 September 2025, the valuation grade for Diksat Transworl has moved from risky to very expensive. The company appears to be overvalued based on its current financial ratios, which include a PE ratio of 201.74, an EV to EBITDA of 205.40, and a Price to Book Value of 8.00. These figures significantly exceed those of its peers, such as Sun TV Network, which has a PE ratio of 12.79, and Zee Entertainment, with a PE ratio of 14.63, indicating that Diksat Transworl is trading at a premium compared to the industry.
Additionally, the company's return on equity (ROE) and return on capital employed (ROCE) are notably low at 0.24% and 0.14%, respectively, further supporting the conclusion of overvaluation. The stock has underperformed relative to the Sensex over various time frames, including a year-to-date decline of 16.97% compared to the Sensex's gain of 4.82%. Overall, the combination of high valuation ratios and poor performance metrics suggests that Diksat Transworl is not a favorable investment at its current price of 115.00.