Is Indifra Ltd overvalued or undervalued?

As of 1 September 2025, the valuation grade for Indifra Ltd has moved from fair to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 10.90, a Price to Book Value of 0.60, and a PEG Ratio of 0.11, which suggest that while the earnings are low relative to the price, the growth expectations are also minimal.
In comparison to peers, Indifra Ltd's PE ratio of 10.90 is notably lower than Adani Enterprises, which has a PE of 77.52, and SRF, which stands at 59.87. This stark contrast highlights that despite Indifra's lower valuation metrics, it is still classified as very expensive in its current market context. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -44.22% compared to the Sensex's positive return of 4.15%, reinforcing the notion that Indifra Ltd is overvalued in the current market environment.