Is Poona Dal & Oil overvalued or undervalued?

As of 8 August 2025, Poona Dal & Oil has moved from a fair valuation to expensive. The company is currently overvalued based on its financial metrics. It has a PE ratio of 28.10, an EV to EBIT of 1.16, and a ROE of 2.30%, which are relatively high compared to its peers. For instance, PTC India, which is considered very attractive, has a PE ratio of just 8.33, while D.P. Abhushan, categorized as expensive, has a PE of 30.05.
In comparison to its peers, Poona Dal & Oil's valuation appears excessive, particularly when looking at the PEG ratio of 0.51, which suggests growth expectations are not sufficiently supported by earnings. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -11.31% compared to the Sensex's 2.20%, reinforcing the notion that the stock is overvalued at its current price of 63.50.