Is Indifra Ltd overvalued or undervalued?

As of 28 August 2025, Indifra Ltd's valuation grade has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently overvalued based on its financial ratios, which include a PE ratio of 10.90, a Price to Book Value of 0.60, and an EV to EBIT of -0.02. These metrics suggest that despite a low PE ratio, the overall valuation does not align with the company's financial performance, particularly given its negative returns on capital employed and equity.
In comparison to its peers, Indifra Ltd's valuation stands out unfavorably. For instance, Adani Enterprises is rated fair with a PE ratio of 77.08, while Tata Chemicals is considered attractive with a PE of 52.7. This stark contrast highlights that Indifra Ltd is not only overvalued but also significantly lagging behind in performance and market confidence. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date decline of 44.22% compared to a modest gain of 3.62% for the index, reinforcing the notion that Indifra Ltd is not a favorable investment at its current price.