Is SBL Infratech overvalued or undervalued?

As of 9 October 2025, SBL Infratech's valuation grade has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently undervalued, with a price-to-earnings (PE) ratio of 2.52, a price-to-book value of 0.75, and an EV to EBITDA ratio of 2.62. These figures suggest that the stock is trading at a substantial discount compared to its earnings and book value.
In comparison to its peers, SBL Infratech stands out with its low valuation metrics, especially when juxtaposed with DLF, which has a PE ratio of 37.66, and Lodha Developers, with a PE ratio of 38.05. The stark contrast in valuations highlights SBL Infratech's potential for growth and value appreciation. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -40.36% compared to the Sensex's 5.16%, reinforcing the notion that the stock may be undervalued in the current market environment.