Is Effwa Infra overvalued or undervalued?

As of 17 September 2025, Effwa Infra's valuation grade has moved from very expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 26.47, an EV to EBITDA of 17.86, and a ROCE of 30.24%. In comparison to peers, Rail Vikas is considered expensive with a PE ratio of 63.09, while Ircon International remains fair with a PE of 26.33.
Effwa Infra's valuation appears reasonable given its strong return metrics, particularly its ROE of 21.19%. Although the stock has underperformed the Sensex over the past year, with a return of -14.77% compared to the Sensex's -0.35%, the recent shift in valuation grade suggests potential for recovery.