Is Effwa Infra overvalued or undervalued?

As of 4 November 2025, Effwa Infra's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 26.99, an EV to EBIT of 18.34, and a ROCE of 30.24%. Compared to its peers, Effwa Infra's valuation metrics are significantly more attractive; for instance, Rail Vikas has a PE ratio of 56.98, while Tube Investments stands at 89.09.
In the context of the construction industry, Effwa Infra's valuation appears reasonable given its strong return on equity of 21.19% and a PEG ratio of 0.00, suggesting potential for growth without excessive cost. While the stock has underperformed relative to the Sensex on a year-to-date basis, its recent weekly return of 12.69% contrasts sharply with the Sensex's decline, reinforcing the notion that Effwa Infra may be a compelling investment opportunity at its current price of 234.45.