Is Jindal Drilling overvalued or undervalued?

As of 8 August 2025, Jindal Drilling's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued, with a price-to-earnings (PE) ratio of 7.61, a price-to-book value of 1.14, and an EV to EBITDA ratio of 5.75. These ratios suggest that the stock is trading at a lower valuation compared to its earnings and book value.
In comparison to its peers, Jindal Drilling's PE ratio is significantly lower than that of Reliance Industries at 22.71 and IOC at 16.56, both of which are considered fairly valued or attractive. Additionally, Jindal's PEG ratio of 0.04 highlights its growth potential relative to its price, further supporting the undervaluation thesis. Despite a recent decline in stock price, Jindal Drilling has shown strong long-term performance, with a 3-year return of 191.63% compared to the Sensex's 35.69%, reinforcing the attractiveness of its current valuation.