Is Shangar Decor overvalued or undervalued?

As of 7 August 2025, Shangar Decor's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 24.97, an EV to EBITDA of 11.30, and a ROCE of 12.57%. In comparison to its peers, Altius Telecom is rated very attractive with a PE of 55.48, while Embassy Office REIT is considered very expensive with a PE of 22.92, highlighting that Shangar Decor's valuation is more moderate within its competitive landscape.
Despite the fair valuation, Shangar Decor has experienced significant declines in stock performance, with a year-to-date return of -50.49% compared to a positive 3.18% return for the Sensex. This underperformance over the past year, where the stock fell by 68.67%, suggests that market sentiment may still be cautious, even as the company maintains a stable valuation relative to its peers.