Is ADC India overvalued or undervalued?

As of 25 June 2025, ADC India has moved from a fair to an expensive valuation grade. The company appears to be overvalued based on its current metrics, with a PE ratio of 23.78, a Price to Book Value of 8.00, and an EV to EBITDA of 18.24. These ratios indicate that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, ADC India stands out with a significantly higher PE ratio than Indus Towers, which has a PE of 11.24, and a much lower valuation than Affle 3i, which is at 71.21. The high ROCE of 154.66% and ROE of 33.65% suggest strong profitability, yet the overall valuation metrics indicate that the stock may not justify its current price. Notably, while ADC India has outperformed the Sensex over the long term with a 5-year return of 851.26%, its recent performance has lagged, with a year-to-date decline of 22.71% compared to the Sensex's gain of 5.91%.