Is AVP Infracon overvalued or undervalued?

As of 12 September 2025, the valuation grade for AVP Infracon moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. The company is currently considered overvalued. Key ratios include a PE ratio of 13.40, an EV to EBITDA of 8.84, and a PEG ratio of 0.17, which suggests that while the company may have strong earnings growth potential, its current valuation does not reflect this adequately compared to its peers.
In comparison to its peers, AVP Infracon's PE ratio is significantly lower than that of DLF and Lodha Developers, which have PE ratios of 39.17 and 39.31, respectively. This indicates that AVP Infracon may be undervalued relative to these competitors despite its expensive classification. Additionally, the company's return over the past year has outperformed the Sensex, with a return of 3.19% compared to the Sensex's -1.08%, which may suggest some resilience in its stock performance.