Is Desco Infra. overvalued or undervalued?

Sep 24 2025 08:09 AM IST
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As of September 23, 2025, Desco Infra. is considered overvalued with a valuation grade shift from fair to expensive, reflected by high financial ratios compared to peers and a recent 10.4% decline in stock performance relative to the Sensex.
As of 23 September 2025, the valuation grade for Desco Infra. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE Ratio of 19.74, an EV to EBIT of 13.62, and an EV to EBITDA of 13.40, which are relatively high compared to its peers.

In comparison, Larsen & Toubro, which is rated attractive, has a significantly higher PE Ratio of 32.44 and an EV to EBITDA of 16.88, highlighting that Desco Infra. is trading at a premium despite lower growth prospects. Other peers like IRB Infra. are also in the expensive category with a PE Ratio of 31.22, further supporting the notion that Desco Infra. is overvalued. Additionally, the stock has underperformed relative to the Sensex over the past month, with a decline of 10.4% compared to a 0.98% increase in the index, reinforcing concerns about its current valuation.
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