Is GHV Infra overvalued or undervalued?

As of 1 June 2025, GHV Infra has moved from a grade of does not qualify to very expensive, indicating a significant shift in its valuation assessment. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 61.85, a Price to Book Value of 24.91, and an EV to EBITDA ratio of 43.80. These figures suggest that the stock price is not justified by its earnings or asset value.
In comparison to its peer, Sindu Valley Technologies Ltd., which has a similar PE ratio of 61.85 and an EV to EBITDA of 43.80, GHV Infra's valuation appears excessive. The company's strong ROCE of 33.89% and ROE of 40.28% highlight operational efficiency, yet the elevated valuation ratios indicate that the market may be pricing in overly optimistic growth expectations. Notably, GHV Infra has significantly outperformed the Sensex in recent periods, with a staggering YTD return of 741.84% compared to the Sensex's 5.56%, further complicating the valuation narrative.