Is Desco Infra. overvalued or undervalued?

As of 14 July 2025, the valuation grade for Desco Infra. has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a PE ratio of 19.81, an EV to EBIT of 13.67, and an EV to EBITDA of 13.44. Compared to peers, Desco Infra.'s valuation appears high; for instance, Larsen & Toubro, which is rated attractive, has a PE ratio of 32.77 and an EV to EBITDA of 16.71, while IRB Infra. is also categorized as expensive with a PE of 37.53.
Given these metrics, Desco Infra. is overvalued in the current market context. The absence of a Price to Book Value and a PEG ratio of 0.00 further underscores concerns about its valuation sustainability. Notably, while Desco Infra. has shown a 2.77% return over the past week, this performance does not align with the broader market trend, as the Sensex has declined by 1.42% in the same period.