Is Sri Lotus overvalued or undervalued?

As of 29 August 2025, the valuation grade for Sri Lotus has moved from does not qualify to very expensive. This indicates a significant shift in the perceived value of the company, leading to the conclusion that it is overvalued. The key ratios supporting this assessment include a PE ratio of 38.94, an EV to EBIT of 29.91, and an EV to EBITDA of 29.75, all of which are considerably high compared to industry norms.
In comparison with peers, Sri Lotus's PE ratio of 38.94 is slightly higher than DLF's 38.29 and lower than Lodha Developers' 40.42, both of which are also categorized as very expensive. The PEG ratio for Sri Lotus is notably at 0.00, indicating no growth expectations, while other peers like DLF and Lodha show PEG ratios of 0.56 and 0.76, respectively. Additionally, recent stock performance shows that Sri Lotus has underperformed the Sensex over the past week, further reinforcing the notion that it is overvalued in the current market context.