Is DMCC Speciality overvalued or undervalued?

As of 8 August 2025, the valuation grade for DMCC Speciality has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 29.79, an EV to EBITDA of 13.41, and a PEG ratio of 0.16. When compared to peers, DMCC's valuation appears more reasonable; for instance, Godrej Industries has a PE ratio of 37.72, while Solar Industries is significantly more expensive at 103.57.
Despite the recent downgrade in valuation, DMCC Speciality has shown strong performance in the short term, with a 1-month stock return of 28.09%, compared to a -4.60% return for the Sensex. This suggests that while the company is currently fairly valued, its recent price momentum may indicate potential for future growth, especially when considering its solid ROCE of 15.01% and ROE of 9.46%.