Is Sanmit Infra overvalued or undervalued?

As of 12 June 2025, the valuation grade for Sanmit Infra has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued, with a PE ratio of 116.89, a Price to Book Value of 4.97, and an EV to EBITDA ratio of 32.62. These figures suggest that the stock is trading at a significant premium compared to its earnings and book value.
In comparison to its peers, Sanmit Infra's PE ratio is substantially higher than that of DLF at 44.93 and Macrotech Developers at 52.2, both of which are also categorized as very expensive. Additionally, the company's ROCE stands at 6.85% and ROE at 4.25%, which are relatively low compared to industry standards, further supporting the conclusion of overvaluation. Notably, while Sanmit Infra has seen a recent stock return of 25.03% over the past month, this contrasts sharply with its year-to-date decline of 11.23%, suggesting volatility that may not be justified by its current valuation metrics.