Is Shervani Indl Sy overvalued or undervalued?

As of 10 November 2025, the valuation grade for Shervani Industrial Syndicate has moved from fair to risky, indicating a significant deterioration in its investment appeal. The company appears to be overvalued based on its current metrics, with a PE ratio of 36.89, an EV to EBITDA ratio of -75.23, and a ROE of just 0.17%. These figures suggest that the company's earnings and operational efficiency are not aligned with its market valuation.
In comparison to its peers, Shervani's valuation stands out as concerning. For instance, DLF has a PE ratio of 42.6 and an EV to EBITDA of 86.15, while Lodha Developers shows a PE of 36.14 and an EV to EBITDA of 27.04. The negative EV to EBIT and EV to EBITDA ratios for Shervani further highlight its underperformance relative to the industry. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -23.87% compared to the Sensex's 6.91%, reinforcing the view that Shervani is overvalued in the current market environment.