Is Jindal Drilling overvalued or undervalued?

As of 28 May 2025, Jindal Drilling's valuation grade has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently undervalued, supported by a PE ratio of 8.37, an EV to EBITDA ratio of 7.38, and a PEG ratio of just 0.03, which suggests strong growth potential relative to its price.
In comparison to its peers, Jindal Drilling's valuation metrics stand out favorably; for instance, Reliance Industries has a PE ratio of 28.05, while ONGC, another peer, has a PE ratio of 8.31. This positions Jindal Drilling as a compelling investment opportunity within the oil sector. Despite recent underperformance relative to the Sensex, with a year-to-date return of -18.26% compared to the Sensex's 5.59%, the long-term outlook remains promising, particularly given its substantial 3-year return of 200.57%.