Is Dalmia Bharat Sugar and Industries Overvalued or Undervalued Right Now?

September 1, 2026
Posted by: Kunal Singla
Category: Market

Dalmia Bharat Sugar and Industries CMP Rs 483.90 (31 Aug 2026), up 1.24%. PE 19.01 vs industry PE 21.01. ROE 7.30%. 52W range Rs 261.40 to Rs 520.00.

Quick Answer

Dalmia Bharat Sugar and Industries trades at a price to earnings ratio of 19.01 against an industry average of 21.01, which puts the stock close to fair value on a simple multiple basis rather than clearly overvalued or undervalued. The company’s 7.30% return on equity and Rs 400.60 book value per share fit broadly within its sector’s range. Whether Dalmia Bharat Sugar and Industries is overvalued or undervalued right now is less about a wide valuation gap and more about how its growth and margins evolve from here.

Is Dalmia Bharat Sugar and Industries overvalued or undervalued right now is a question worth asking given how its price to earnings ratio compares with the rest of its sector. At the current market price of Rs 483.90, the stock trades roughly 6.9% below its 52 week high of Rs 520.00 and about 85.1% above its 52 week low of Rs 261.40.

Dalmia Bharat Sugar and Industries’s share price moved up 1.24% in Monday’s session to Rs 483.90, against a market capitalisation of Rs 3,866 Cr. This article looks at the numbers, the PE ratio, price to book, return on equity, debt levels and recent earnings trends, that determine whether the current price reflects fair value or a stretched multiple.

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Table of Contents

Dalmia Bharat Sugar and Industries Valuation Metrics: Where Does the Stock Stand?

Valuation Metric	Dalmia Bharat Sugar and Industries
CMP (31 Aug 2026)	Rs 483.90
Market Cap	Rs 3,866 Cr
P/E Ratio	19.01
Industry P/E	21.01
P/B Ratio	1.19
Sector Average P/B (sugar milling)	2.10
Return on Equity (ROE)	7.30%
Sector Average ROE (sugar milling)	7.56%
EPS (TTM)	Rs 25.12
Book Value per Share	Rs 400.60
Debt to Equity	0.56
Dividend Yield	1.26%
Sector Average Dividend Yield (sugar milling)	0.42%
52 Week High / Low	Rs 520.00 / Rs 261.40

The headline number here is the price to earnings ratio. At 19.01, the Dalmia Bharat Sugar and Industries PE ratio is 0.9 times the industry average of 21.01. Measured against its sugar milling sector peers, the gap widens further on other measures too: a P/B of 1.19 against a sector average of 2.10, and an ROE of 7.30% against a sector average of 7.56%.

Is Dalmia Bharat Sugar and Industries Overvalued Based on Its P/E Ratio?

Based on the P/E ratio alone, Dalmia Bharat Sugar and Industries looks fairly valued. The stock’s PE of 19.01 sits close to the industry average of 21.01, which suggests the market is pricing the business roughly in line with its sector rather than at a premium or a discount. That leaves the read on whether Dalmia Bharat Sugar and Industries is overvalued or undervalued more dependent on its growth trajectory than on the PE ratio itself.

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Dalmia Bharat Sugar and Industries’s Financial Growth and Profitability

Dalmia Bharat Sugar and Industries’s revenue moved from Rs 3,786.16 crore in FY2025 to Rs 3,711.76 crore in FY2026, a change of -2.0%. Net profit fell from Rs 365.50 crore to Rs 235.66 crore over the same period, a swing of roughly 35.5%.

The dip in net profit is worth watching closely, since a PE of 19.01 assumes the business can grow back into its current valuation rather than shrink further. A sustained profit decline would make the Dalmia Bharat Sugar and Industries share price look more expensive than the headline PE already suggests.

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Arguments That Dalmia Bharat Sugar and Industries Could Be Overvalued

Sector-wide re-rating risk: If sentiment toward the sector turns, a PE of 19.01 still has room to compress toward the industry average of 21.01.
Limited margin of safety: At Rs 483.90, the stock is only 6.9% below its 52 week high of Rs 520.00, leaving less room for error if earnings disappoint.

Arguments That Support the Premium Valuation

Reasonable income: A dividend yield of 1.26% offers some cushion while the market decides on the growth story.
52 week range context: At Rs 483.90, the stock is 85.1% above its 52 week low of Rs 261.40, showing it has already found some support at lower levels.

Verdict: Is Dalmia Bharat Sugar and Industries Overvalued or Undervalued Right Now?

On balance, Dalmia Bharat Sugar and Industries looks fairly valued rather than clearly overvalued or undervalued. Its PE of 19.01 sits close to the industry average of 21.01, and its 7.30% ROE and other ratios do not point to a significant mispricing either way. The more useful question for investors from here is less about the current multiple and more about whether earnings growth accelerates or slows.

What Could Change This Valuation Picture for Dalmia Bharat Sugar and Industries?

Two broad scenarios could shift this valuation call on Dalmia Bharat Sugar and Industries in either direction. On the upside, an improvement in return ratios or growth that pushes the stock’s PE of 19.01 toward a premium over the industry average of 21.01. On the downside, a deterioration in the numbers that pulls the PE below the industry average of 21.01 instead. Investors watching the Dalmia Bharat Sugar and Industries share price over the next few quarters should track whether reported ROE holds near 7.30% and whether the PE gap versus the industry average of 21.01 widens or narrows, since both will matter more to the eventual answer than the current price point on its own.

Conclusion

Dalmia Bharat Sugar and Industries’s numbers point to a stock that is fairly valued on headline multiples. Investors tracking the Dalmia Bharat Sugar and Industries share price should watch whether earnings growth can keep pace with the current PE of 19.01, since that gap remains the single biggest variable in whether the stock is undervalued, fairly priced, or overvalued from here. This article is for informational purposes only and is not investment advice.

Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).

FAQs on Dalmia Bharat Sugar and Industries Valuation

Is Dalmia Bharat Sugar and Industries overvalued or undervalued right now?

Ans. Based on a PE ratio of 19.01 against an industry average of 21.01, Dalmia Bharat Sugar and Industries currently looks fairly valued on relative valuation. Its 7.30% ROE is an important part of the picture alongside the PE ratio.

What is Dalmia Bharat Sugar and Industries’s current PE ratio?

Ans. Dalmia Bharat Sugar and Industries’s price to earnings ratio stands at 19.01, compared with an industry average PE of 21.01.

What is Dalmia Bharat Sugar and Industries’s return on equity?

Ans. Dalmia Bharat Sugar and Industries generates a return on equity of 7.30%, against a sector average of 7.56% among sugar milling peers.

What is Dalmia Bharat Sugar and Industries’s 52 week high and low?

Ans. Dalmia Bharat Sugar and Industries’s 52 week high is Rs 520.00 and its 52 week low is Rs 261.40. The stock currently trades around Rs 483.90, roughly 6.9% below its high.

Does Dalmia Bharat Sugar and Industries have high debt?

Ans. Dalmia Bharat Sugar and Industries carries a debt to equity ratio of 0.56, which is moderate for its sector.

What is Dalmia Bharat Sugar and Industries’s dividend yield?

Ans. Dalmia Bharat Sugar and Industries offers a dividend yield of 1.26% at the current share price.

Is Dalmia Bharat Sugar and Industries a good stock to buy at current levels?

Ans. Dalmia Bharat Sugar and Industries’s current valuation suits investors who agree with the fairly valued read on its PE ratio and are comfortable with the trade-off between its return ratios and its price. This is for informational purposes only and is not investment advice.

What is Dalmia Bharat Sugar and Industries’s price to book ratio?

Ans. Dalmia Bharat Sugar and Industries trades at a price to book ratio of 1.19, compared with a sector average of 2.10 among sugar milling peers.

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Author: Kunal Singla

Kunal Singla is the Associate Director - Research at Univest, leading quantitative equity research, intraday trading setups, and derivatives strategy. With 4+ years of experience in Indian equity markets, he combines rigorous quantitative methods with classical technical analysis to build high-conviction research frameworks for retail and advisory clients. He holds an MSc from the Indian Institute of Technology (IIT) Delhi — one of India's most selective institutions — and has completed the Certificate in Quantitative Finance (CQF), a globally recognised programme covering derivatives pricing, risk modelling, machine learning for finance, and advanced portfolio theory. This combination places him in a small group of Indian analysts with both deep academic training in quantitative methods and SEBI-recognised research credentials. Kunal holds seven SEBI-recognised NISM certifications spanning research, derivatives, portfolio management, and securities operations: Series-XV (Research Analyst), Series-XXI-A (Portfolio Managers), Series-XVI (Commodity Derivatives), Series-VIII (Equity Derivatives), Series-VII (SORM), Series-V-A (Mutual Fund Distributors), and Series-I (Currency Derivatives). At Univest — India's SEBI-registered research and advisory platform — Kunal leads research inputs for Pro Lite, Pro Super, Pro Gold, and Pro Commodity advisory services, alongside publishing intraday stock picks on Univest Blogs.