Is ADC India overvalued or undervalued?

As of 14 October 2025, the valuation grade for ADC India has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 32.31, an EV to EBITDA of 25.06, and a Price to Book Value of 10.38, which are significantly higher than many peers in the telecom equipment industry.
In comparison, Indus Towers, which is rated fair, has a PE ratio of 9.39 and an EV to EBITDA of 5.30, indicating that ADC India is trading at a premium relative to its peers. Additionally, Black Box, also categorized as expensive, has a PE ratio of 34.61, further emphasizing the elevated valuation of ADC India. While the stock has underperformed the Sensex over the past year, with a return of -16.92% compared to the Sensex's 0.07%, the substantial ROCE of 336.65% suggests strong operational efficiency, albeit at a high valuation.