Is Chavda Infra Ltd overvalued or undervalued?

As of 28 August 2025, the valuation grade for Chavda Infra Ltd has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 13.92, an EV to EBITDA of 6.37, and a Price to Book Value of 3.28. These figures suggest that the company's valuation metrics are not competitive compared to its peers.
In comparison to notable competitors, DLF has a significantly higher PE ratio of 38.78 and an EV to EBITDA of 82.46, while Lodha Developers shows a PE ratio of 40.93 and an EV to EBITDA of 29.86, both categorized as very expensive. Given these comparisons and the overall valuation grade, Chavda Infra Ltd appears overvalued in the current market context. The company's stock has also underperformed relative to the Sensex, with a year-to-date return of -28.64% compared to the Sensex's positive return of 3.62%.