Is SPML Infra overvalued or undervalued?

As of 17 September 2025, SPML Infra's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 41.06, an EV to EBITDA ratio of 54.55, and a PEG ratio of 0.05, suggesting that the stock may be undervalued relative to its growth potential.
In comparison to peers, Larsen & Toubro, which also holds a fair valuation, has a significantly lower PE ratio of 32.69 and an EV to EBITDA of 16.99, highlighting a disparity in valuation metrics. Meanwhile, CG Power & Industries is categorized as very expensive with a PE ratio of 124.33, further emphasizing SPML Infra's relatively better valuation. Notably, SPML Infra has outperformed the Sensex over the past three years with a remarkable return of 647.78%, which reinforces its potential as a solid investment despite recent short-term fluctuations.