Is Dynamic Cables overvalued or undervalued?

As of 1 April 2025, the valuation grade for Dynamic Cables has moved from attractive to very attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 33.66, an EV to EBITDA of 20.54, and a PEG ratio of 0.60, which suggests strong growth potential relative to its price.
In comparison to peers, Dynamic Cables has a higher PE ratio than the industry average, but its PEG ratio of 0.60 indicates that it may be undervalued relative to its growth prospects. Notably, its return on capital employed (ROCE) stands at 26.48%, which is significantly robust. Over the past year, the stock has outperformed the Sensex, returning 50.9% compared to the Sensex's 7.55%, further reinforcing the undervaluation narrative.