Is Shradha AI Tech overvalued or undervalued?

As of 2 June 2024, Shradha AI Tech has moved from a grade of "does not qualify" to "very expensive." The company is currently overvalued based on its valuation metrics. The PE ratio stands at 24.32, while the EV to EBITDA ratio is 22.57, and the PEG ratio is notably low at 0.45, indicating potential overvaluation relative to growth expectations.
In comparison to its peers, Shradha AI Tech's valuation is significantly higher than that of PTC India Ltd., which is rated "very attractive" with a PE ratio of 9.02 and an EV to EBITDA of 4.14. Additionally, Elitecon International is categorized as "very expensive" with a PE ratio of 131.08, further highlighting the disparity in valuation within the sector. Notably, while Shradha AI Tech has delivered a remarkable 98.85% return over the past year, its year-to-date performance is down by 28.13%, contrasting sharply with the Sensex's 5.54% gain, reinforcing the notion that the stock may be overvalued at its current price of 39.89.