Is Dhanuka Realty overvalued or undervalued?

As of 16 June 2025, Dhanuka Realty's valuation grade has moved from very expensive to risky, indicating a shift in perception regarding its market position. The company appears to be undervalued, particularly when considering its PE ratio of 22.91, EV to EBIT of 23.49, and a PEG ratio of 0.03, which suggests that the stock may be priced attractively relative to its growth potential.
In comparison to peers, Dhanuka Realty's valuation metrics stand out, especially against DLF, which has a PE ratio of 45.53, and Macrotech Developers with a PE of 52.95. This positions Dhanuka Realty as a more appealing option within the sector, despite its current risky classification. Additionally, the company's impressive year-to-date return of 129.46% significantly outpaces the Sensex's 5.51%, reinforcing the notion that it may be undervalued in the current market context.