Is Suntech Infra. overvalued or undervalued?

As of 18 September 2025, the valuation grade for Suntech Infra. has moved from does not qualify to expensive, indicating a shift towards a less favorable assessment. The company is currently considered overvalued based on its key financial ratios. The PE ratio stands at 10.20, while the EV to EBITDA is at 4.63, and the ROE is a strong 31.40%. However, these figures are not competitive when compared to peers such as Larsen & Toubro, which has a PE ratio of 32.69, and IRB Infra. Development, with a PE of 31.81.
In light of the current valuation metrics and peer comparisons, Suntech Infra. appears to be overvalued. The company's recent stock performance has also lagged behind the Sensex, with a 1-week return of -11.27% compared to the Sensex's 1.67% gain, further reinforcing the notion that the stock may not be a favorable investment at this time.