Is Roadstar Infra overvalued or undervalued?

As of 11 August 2025, the valuation grade for Roadstar Infra has moved from fair to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -780.82, which suggests severe profitability issues, and a Price to Book Value of 0.60, indicating that the market values the company less than its book value. Additionally, the EV to EBITDA ratio stands at 10.12, which is relatively high compared to its peers.
In comparison to its peers, Roadstar Infra's valuation metrics are concerning. For instance, Larsen & Toubro, which is rated fair, has a PE ratio of 32.54 and an EV to EBITDA of 16.92, highlighting a stark contrast in valuation and profitability. Other peers like Siemens and CG Power & Ind are categorized as very expensive, further emphasizing Roadstar's risky position. The company's recent stock performance has also lagged behind the Sensex, with a 1-month return of -10% compared to a -2.30% return for the index, reinforcing the notion that Roadstar Infra is currently overvalued.