Is Kaarya Facilit. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Kaarya Facilit. has moved from risky to does not qualify, indicating a significant shift in its perceived investment quality. The company appears to be overvalued based on its current financial metrics, with a PE Ratio of 8.52, an EV to EBITDA of 7.28, and an exceptionally high ROE of 196.00%.
In comparison to its peers, Kaarya Facilit. stands out unfavorably; for instance, Altius Telecom, considered very attractive, has a PE Ratio of 54.74, while Embassy Off.REIT is deemed very expensive with a PE Ratio of 23.82. The stark contrast in valuation metrics suggests that Kaarya Facilit. is not only overvalued but also lacks the financial robustness exhibited by its competitors. Despite its recent stock performance, which has significantly outpaced the Sensex over the past year with a return of 241.3%, the valuation metrics indicate that investors should approach with caution.