Is Poona Dal & Oil overvalued or undervalued?

As of 10 November 2025, the valuation grade for Poona Dal & Oil has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. The company is currently considered overvalued. Key ratios include a PE ratio of 31.50, an EV to EBIT of 1.31, and a PEG ratio of 0.57, which suggests that while the company may have growth potential, its current price does not adequately reflect its earnings relative to its growth.
In comparison to its peers, Poona Dal & Oil's PE ratio is significantly higher than that of PTC India, which stands at 7.89, indicating that Poona Dal & Oil is trading at a premium despite its lower return metrics, such as a ROCE of 5.93% and an ROE of 2.27%. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -0.56% compared to the Sensex's 6.91%, further reinforcing the notion that the stock may be overvalued in its current market context.