Is Chavda Infra Ltd overvalued or undervalued?

As of 18 June 2025, Chavda Infra Ltd has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued based on its financial metrics. The PE ratio stands at 14.55, while the EV to EBITDA ratio is 6.61, and the Price to Book Value is 3.43. These ratios indicate that the company is trading at a premium compared to its earnings and book value.
In comparison to its peers, Chavda Infra Ltd's PE ratio is significantly lower than that of DLF, which has a PE of 44.9, and Macrotech Developers, with a PE of 52.15, both categorized as very expensive. This suggests that while Chavda Infra Ltd is overvalued, it is relatively more attractive than some of its peers. Notably, the company's stock has underperformed against the Sensex, with a year-to-date return of -25.37% compared to the Sensex's positive return of 4.94%, reinforcing the notion that the stock may be overvalued in the current market environment.