Is Dhanuka Realty overvalued or undervalued?

As of 3 June 2025, Dhanuka Realty's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE Ratio of 22.91, an EV to EBIT of 23.49, and a Price to Book Value of 2.54, which suggest that the stock is priced at a premium relative to its earnings and assets.
In comparison to its peers, Dhanuka Realty's PE Ratio is notably lower than that of DLF Ltd., which stands at 46.64, and Macrotech Developers at 54.71, both of which are also classified as very expensive. This indicates that while Dhanuka Realty is overvalued, it is less so than some of its direct competitors. Additionally, the company's recent stock performance has outpaced the Sensex significantly over the longer term, with a year-to-date return of 129.46% compared to the Sensex's 6.20%, reinforcing the narrative of overvaluation amidst strong historical performance.