Is Roadstar Infra overvalued or undervalued?

As of 8 August 2025, Roadstar Infra's valuation grade has moved from expensive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a price-to-earnings (PE) ratio of -780.82, a price-to-book value of 0.60, and an EV to EBITDA ratio of 10.12. These ratios suggest that while the company is not generating profits, its asset valuation and earnings potential are more in line with market expectations compared to prior assessments.
In comparison to its peers, Roadstar Infra's valuation metrics stand out, particularly when juxtaposed with Larsen & Toubro, which has a PE ratio of 32.04 and an EV to EBITDA of 16.69. This highlights a significant disparity in profitability and market perception. Additionally, while the company has shown a stock return of 20% over the past week, the Sensex has seen a decline of 0.92%, reinforcing the notion that Roadstar Infra may be adjusting favorably in a challenging market environment.