Is Shangar Decor overvalued or undervalued?

As of 27 June 2025, Shangar Decor's valuation grade has moved from fair to attractive, indicating a positive shift in its market position. The company is currently deemed undervalued, with a PE ratio of 10.22, an EV to EBITDA of 7.00, and a PEG ratio of 0.06, which suggests that the stock is trading at a significant discount relative to its earnings growth potential.
In comparison to its peers, Shangar Decor's PE ratio is notably lower than that of Altius Telecom, which stands at 54.42, and Embassy Office REIT, which is at 22.99. This further reinforces the notion that Shangar Decor is undervalued within its industry. Additionally, the company has a robust ROE of 36.00% and a ROCE of 12.57%, highlighting its efficient use of equity and capital. Despite recent underperformance against the Sensex, with a year-to-date return of -39.81% compared to the Sensex's 7.58%, the fundamental metrics suggest that there is potential for recovery and growth in the company's valuation.