Is Kridhan Infra overvalued or undervalued?

As of 25 April 2023, Kridhan Infra's valuation grade has moved from does not qualify to risky, indicating increased scrutiny on its financial metrics. The company appears to be overvalued given its high PE ratio of 43.50 and EV to EBIT of 44.66, which are significantly elevated compared to its peers. Notably, the PEG ratio stands at 0.43, suggesting potential growth but still reflects the high valuation relative to earnings growth expectations.
In comparison, DLF and Macrotech Development, both categorized as very expensive, have PE ratios of 46.64 and 54.71, respectively, which are higher than Kridhan Infra's. However, Kridhan's negative Price to Book Value and negative Return on Capital Employed further highlight its financial instability. Despite recent stock performance showing a 24.86% return over the past month compared to the Sensex's 3.87%, the overall valuation metrics suggest that Kridhan Infra remains overvalued in the current market context.