Is Shantidoot Infra overvalued or undervalued?

As of 20 May 2025, the valuation grade for Shantidoot Infra has moved from risky to does not qualify, indicating a significant shift in its investment profile. The company appears to be overvalued, given its high PE ratio of 34.87, an EV to EBITDA of 21.67, and a PEG ratio of 0.96. These ratios suggest that the stock may not be justified at its current price level, especially when compared to peers such as DLF Ltd. with a PE of 46.64 and Macrotech Developers at 54.71, both categorized as very expensive.
Furthermore, Shantidoot Infra's recent stock performance has been underwhelming, with a year-to-date return of -26.29%, contrasting sharply with the Sensex's positive return of 5.56% over the same period. This divergence reinforces the view that the stock is currently overvalued, as it struggles to keep pace with broader market trends while exhibiting high valuation ratios relative to its peers.