Is Arisinfra Solu. overvalued or undervalued?

As of 1 September 2025, the valuation grade for Arisinfra Solutions has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 204.05, an EV to EBITDA ratio of 29.12, and a Price to Book Value of 5.02. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Arisinfra Solutions' PE ratio is substantially higher than that of PTC India, which stands at 8.43, indicating that Arisinfra is priced much more aggressively despite lower returns, as reflected in its ROE of only 2.46%. Additionally, while Elitecon International is categorized as very expensive with a PE of 715.24, it highlights the extreme valuation landscape in this sector. The recent performance of Arisinfra Solutions shows a decline of 4.79% over the past week, contrasting with a smaller decline of 1.56% in the Sensex, reinforcing the notion that the stock may be overvalued in the current market environment.