Is Disha Resources overvalued or undervalued?

As of 23 October 2025, the valuation grade for Disha Resources has moved from very expensive to risky, indicating a significant shift in its perceived value. The company appears to be undervalued based on its current financial ratios, which include a PE ratio of -26.12, an EV to EBIT of -15.37, and a Price to Book Value of 0.39. These figures suggest that the market may not be fully recognizing the potential value of the company, especially when compared to peers like Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, with a PE of 11.68.
In the context of its performance, Disha Resources has shown a stock return of 8.19% over the past week, significantly outperforming the Sensex's return of 1.30% during the same period. However, its year-to-date return of -15.91% contrasts sharply with the Sensex's 8.21%, highlighting the volatility and potential risk associated with the stock. Overall, while the company is currently classified as risky, its low valuation ratios and recent stock performance suggest that it may present an attractive opportunity for investors looking for undervalued assets.