Is SBL Infratech overvalued or undervalued?

As of 3 June 2025, SBL Infratech's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly given its compelling financial ratios: a PE ratio of 3.31, an EV to EBIT of 3.41, and a PEG ratio of 0.04. These figures suggest that the stock is trading at a substantial discount compared to its earnings potential.
In comparison to its peers, SBL Infratech stands out significantly. For instance, DLF Ltd. has a PE ratio of 46.64 and Macrotech Developers has a PE of 54.71, both categorizing them as very expensive. This stark contrast highlights SBL Infratech's undervaluation in the realty sector. Additionally, while the stock has experienced a year-to-date decline of 21.76%, it has outperformed the Sensex over the past year with a return of 10.27%, reinforcing the attractiveness of its current valuation.