Is Effwa Infra overvalued or undervalued?

As of 3 November 2025, Effwa Infra's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on key ratios, including a PE Ratio of 27.68, an EV to EBIT of 18.81, and an ROE of 21.19%. In comparison to peers, Effwa Infra's PE Ratio is significantly higher than Ircon International, which has a PE of 23.84, and much lower than Tube Investments, which is at 90.93, highlighting a relative overvaluation within its sector.
The overall verdict for Effwa Infra is that it is overvalued. The company has shown a recent stock return of 18.13% over the past week, contrasting with a -0.78% return for the Sensex, which may suggest short-term investor interest despite the long-term valuation concerns. With a PEG Ratio of 0.00, the lack of growth expectations further supports the notion that the current price may not be justified by its earnings potential.