Is Chavda Infra Ltd overvalued or undervalued?

As of 22 August 2025, Chavda Infra Ltd has moved from a valuation grade of very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE ratio of 14.84, an EV to EBITDA ratio of 6.72, and a ROCE of 24.80%. When compared to peers, DLF has a significantly higher PE ratio of 39.45, while Lodha Developers stands at 42.51, indicating that Chavda Infra Ltd is trading at a lower valuation relative to these competitors.
Despite a recent stock return of 7.53% over the past week, the year-to-date performance shows a decline of 23.88%, which contrasts sharply with the Sensex's positive return of 5.18% in the same period. This suggests that Chavda Infra Ltd is not only overvalued compared to its peers but also underperforming in the broader market context.