Is AVP Infracon overvalued or undervalued?

As of 26 August 2025, the valuation grade for AVP Infracon has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its financial metrics, with a PE ratio of 13.47, an EV to EBITDA of 8.88, and a PEG ratio of 0.17, suggesting strong growth potential relative to its price.
In comparison to its peers, AVP Infracon stands out with a significantly lower PE ratio than DLF at 39.03 and Lodha Developers at 41.47, both categorized as very expensive. Additionally, AVP's ROCE of 37.37% and ROE of 35.57% further highlight its operational efficiency and profitability compared to the industry average. Despite recent underperformance against the Sensex, with a year-to-date decline of 14.21% versus a 4.51% gain for the index, the company's valuation metrics suggest it is positioned well within the construction sector.