Is Desco Infra. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Desco Infra. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued based on its PE ratio of 19.66 and EV to EBITDA of 13.34, which are competitive within its industry. Notably, while Desco Infra. holds a PEG ratio of 0.00, indicating no growth expectations priced in, it is still positioned better than peers like CG Power & Ind, which is very expensive with a PE ratio of 123.28, and Siemens, also very expensive with a PE ratio of 59.72.
In comparison to its peers, Desco Infra.'s valuation appears reasonable, especially when contrasted with Larsen & Toubro, which is rated attractive with a PE ratio of 31.77. The current market price of 232.00 reflects a decline from its previous close of 240.00, further emphasizing the stock's recent underperformance, with a 1-month return of -16.2% compared to a 2.08% gain in the Sensex. Overall, Desco Infra. is fairly valued in the current market context.