Is Samor Reality overvalued or undervalued?

As of 14 November 2025, the valuation grade for Samor Reality has moved from fair to attractive, indicating a more favorable assessment of its value. The company appears to be undervalued, particularly given its current PE ratio of -471.59, which suggests significant challenges in profitability, alongside a price-to-book value of 2.04 and an EV to EBITDA of 43.95. The return on capital employed (ROCE) stands at a modest 3.98%, while the return on equity (ROE) is negative at -0.43%, highlighting operational inefficiencies.
In comparison to its peers, Samor Reality's valuation contrasts sharply with DLF, which has a PE ratio of 42.94 and an EV to EBITDA of 93.17, and Lodha Developers with a PE ratio of 36.26 and an EV to EBITDA of 27.13, both categorized as very expensive. Despite the attractive valuation grade, the company's stock has underperformed against the Sensex, with a year-to-date return of -14.25% compared to the Sensex's 8.22%. This suggests that while the valuation may be appealing, market sentiment and operational performance remain critical factors to consider.