Is Aditya Infotech overvalued or undervalued?

As of 29 August 2025, the valuation grade for Aditya Infotech has moved from does not qualify to very expensive. The company is currently assessed as overvalued, with a PE ratio of 108.98, a Price to Book Value of 34.13, and an EV to EBITDA ratio of 63.48. In comparison, peers such as Redington have a PE ratio of 16.61 and Tejas Networks with a PE ratio of 58.85, highlighting significant discrepancies in valuation metrics.
The company's high valuation ratios indicate that it is trading at a premium compared to its peers, which raises concerns about its sustainability and growth prospects. Recent stock performance has also been underwhelming, with a 1-week return of -7.58% compared to the Sensex's -1.84%, further reinforcing the notion that Aditya Infotech is overvalued in the current market environment.