Is Maruti Infra. overvalued or undervalued?

As of 27 June 2025, the valuation grade for Maruti Infra. has moved from expensive to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, with a PE ratio of -150.94, an EV to EBITDA of 191.97, and a Price to Book Value of 5.94. These ratios suggest that the company's market price is not justified by its earnings or asset values.
When compared to peers, Maruti Infra. stands out with a much lower PE ratio than DLF, which has a PE of 44.83, and Macrotech Developers, at 51.4. The stark contrast in valuation metrics highlights the overvaluation of Maruti Infra. Additionally, the company has experienced a significant decline in stock performance over the past year, with a return of -43.15% compared to a 6.08% return for the Sensex, reinforcing the notion that the stock is not only overvalued but also underperforming in the market.