Is Ruchi Infrastr. overvalued or undervalued?

As of 9 September 2025, Ruchi Infrastructure's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 22.11, an EV to EBITDA of 12.97, and a ROCE of just 1.03%. These figures suggest that the company's earnings and return on capital are not sufficient to justify its current price.
In comparison to its peers, Ruchi Infrastructure's PE ratio is higher than Gokul Agro's 18.91 and Guj. Ambuja's 20.48, both of which are considered more attractively valued. Additionally, the company's EV to EBIT ratio of 94.36 is significantly higher than the industry average, further supporting the conclusion of overvaluation. Notably, Ruchi's stock has underperformed relative to the Sensex, with a year-to-date return of -35.31% compared to the Sensex's 3.79%, reinforcing concerns about its current valuation.