Is Arihant Super. overvalued or undervalued?

As of 20 June 2025, the valuation grade for Arihant Super. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 27.50, an EV to EBITDA of 21.33, and a Price to Book Value of 4.86, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Arihant Super. has a lower PE ratio than DLF, which stands at 45.29, and Macrotech Developers, at 53.86, both categorized as very expensive. Despite its relatively lower valuation among peers, the overall metrics suggest that Arihant Super. is not justified at its current price level. Additionally, the company's recent stock performance shows a year-to-date decline of 22.37%, contrasting with a 5.46% gain in the Sensex, further supporting the view that it is overvalued.