Is Roadstar Infra overvalued or undervalued?

As of 10 September 2025, Roadstar Infra's valuation grade has moved from risky to fair, indicating a more stable outlook. The company is currently assessed as fairly valued, despite its unusual PE ratio of -750.89, which suggests significant challenges in profitability. Other key ratios include a Price to Book Value of 0.57 and an EV to EBITDA of 9.92, which are more indicative of the company's valuation compared to its peers.
In comparison to its industry peers, Roadstar Infra's valuation metrics stand out. For instance, Larsen & Toubro, which is rated as attractive, has a PE ratio of 31.55 and an EV to EBITDA of 16.47. In contrast, CG Power & Ind is deemed very expensive with a PE ratio of 120.64. The recent stock performance of Roadstar Infra has been underwhelming, with a 1-week return of -19.86%, contrasting sharply with a 1-week Sensex return of 1.06%. This divergence reinforces the notion that while Roadstar Infra's valuation has improved, it still faces significant hurdles in achieving profitability and market confidence.