Is Roadstar Infra overvalued or undervalued?

As of 8 August 2025, Roadstar Infra's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of -780.82, a Price to Book Value of 0.60, and an EV to EBITDA of 10.12. These figures suggest that while the PE ratio is exceptionally low, the other ratios indicate a more stable valuation relative to its earnings and book value.
In comparison to peers, Roadstar Infra's EV to EBITDA of 10.12 is significantly lower than Larsen & Toubro's 16.69, which also has a PE ratio of 32.04, highlighting a stark contrast in valuation metrics. Other competitors like Siemens and CG Power & Ind are classified as very expensive, with PE ratios of 52.27 and 104.64, respectively. This suggests that Roadstar Infra may present a relatively attractive investment opportunity within its sector. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-week return of 20% compared to a -0.92% return for the index, reinforcing its potential as a value proposition.