Is AVP Infracon overvalued or undervalued?

As of 29 August 2025, the valuation grade for AVP Infracon has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently overvalued based on its financial ratios, which include a PE Ratio of 13.44, an EV to EBITDA of 8.86, and a PEG Ratio of 0.17. These figures suggest that the stock is priced higher than its earnings growth potential would justify.
In comparison to its peers, AVP Infracon's PE Ratio is notably lower than that of DLF at 38.29 and Lodha Developers at 40.42, both of which are also classified as very expensive. Despite its high ROCE of 37.37% and ROE of 35.57%, the overall valuation metrics indicate that AVP Infracon is not justified at its current price of 178.70, especially given its poor stock performance compared to the Sensex, with a year-to-date return of -14.09% versus the Sensex's 3.31%.