Is 3i Infotech overvalued or undervalued?

As of 1 October 2025, the valuation grade for 3i Infotech has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 9.46, an EV to EBITDA of 14.47, and a PEG ratio of 0.06, which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, 3i Infotech's PE ratio is significantly lower than that of TCS at 21.4 and Infosys at 22.03, both of which are categorized as attractive and fair, respectively. Additionally, 3i Infotech's EV to EBITDA ratio of 14.47 is more favorable than that of HCL Technologies, which stands at 13.77. Despite recent underperformance relative to the Sensex, the valuation metrics indicate that 3i Infotech presents a compelling investment opportunity given its strong fundamentals and attractive pricing.