Is Rithwik Facility overvalued or undervalued?

As of 28 August 2025, Rithwik Facility's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 14.23, an EV to EBITDA of 9.65, and a PEG ratio of 0.44, all of which suggest that the stock is trading at a lower valuation compared to its earnings growth potential.
In comparison to its peers, Rithwik Facility's valuation metrics stand out. For instance, Altius Telecom has a PE ratio of 55.85, while Embassy Off.REIT is at 22.58, both indicating that Rithwik is significantly cheaper relative to these companies. Additionally, the company's return on capital employed (ROCE) is a strong 22.88%, further emphasizing its operational efficiency. Despite a year-to-date decline of 5.6% compared to a 2.48% increase in the Sensex, Rithwik has shown impressive growth over the past year with a return of 47.95%, reinforcing the attractiveness of its current valuation.