Is SBL Infratech overvalued or undervalued?

As of 28 August 2025, SBL Infratech's valuation grade has moved from fair to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a PE ratio of 3.03, a Price to Book Value of 0.89, and an EV to EBITDA ratio of 3.12, all of which are considerably lower than industry peers. For comparison, DLF has a PE ratio of 38.78 and an EV to EBITDA of 82.46, while Lodha Developers shows a PE of 40.93, highlighting the stark contrast in valuation metrics.
The company's financial ratios suggest strong potential for growth, as evidenced by a PEG ratio of 0.04 and ROCE of 5.17%. Despite recent underperformance relative to the Sensex, with a year-to-date return of -28.48% compared to the Sensex's 2.48%, the fundamental valuation metrics indicate that SBL Infratech presents a compelling investment opportunity at its current price of 37.30.