Is Savy Infra overvalued or undervalued?

As of 1 September 2025, Savy Infra's valuation grade has moved from does not qualify to risky, indicating a shift in its perceived investment quality. The company appears to be overvalued at its current price of 139.95, especially when considering its PE ratio of 12.49, which is significantly lower than peers like Rail Vikas at 55.26 and Tube Investments at 93.83. Additionally, Savy Infra's EV to EBITDA stands at 9.63, which is less favorable compared to the industry benchmarks.
With a ROCE of 36.97% and ROE of 45.71%, Savy Infra shows strong profitability metrics; however, these are overshadowed by its high Price to Book Value ratio of 5.71. The comparison with peers highlights that while Savy Infra is classified as risky, many of its competitors are deemed expensive, suggesting that the market may be pricing in excessive growth expectations. Recent stock performance, particularly a decline of 5.66% over the past month against a slight gain in the Sensex, further reinforces the notion that Savy Infra may not be a compelling investment at this time.