Is SBL Infratech overvalued or undervalued?

As of 9 June 2025, SBL Infratech's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 3.46, an EV to EBIT of 3.55, and a PEG ratio of 0.04, all of which suggest that the stock is trading at a significant discount compared to its earnings potential.
In comparison to its peers, SBL Infratech stands out with its low valuation metrics, particularly when contrasted with DLF, which has a PE ratio of 46.56, and Macrotech Developers at 54.58. This stark difference highlights SBL Infratech's potential for growth relative to its more expensive counterparts. Additionally, while the stock has underperformed year-to-date with a return of -18.31% compared to the Sensex's 5.51%, its 1-year return of 15.14% suggests a recovery potential that could be appealing to investors.