Is Sathlokhar Sys. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Sathlokhar Systems has moved from fair to expensive, indicating that the company is overvalued. The key ratios reflect this assessment, with a PE ratio of 29.41, an EV to EBIT of 21.58, and an EV to EBITDA of 21.35, all of which are significantly higher than industry norms.
When compared to peers, Sathlokhar's PE ratio is notably lower than DLF's 40.04 and Lodha Developers' 39.71, both of which are categorized as very expensive. Additionally, the PEG ratio for Sathlokhar is 0.00, suggesting no growth expectations, which further emphasizes its overvaluation. In terms of recent performance, the company's stock has outperformed the Sensex with a 1-year return of 46.38% compared to the Sensex's 5.96%, but this does not mitigate the current overvaluation status.