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. This indicates a significant shift in the company's perceived value, leading to the conclusion that it is overvalued. Key ratios highlight this assessment, with a PE ratio of 108.98, an EV to EBITDA of 63.48, and a Price to Book Value of 34.13, all of which are substantially higher than industry norms.
In comparison to peers, Aditya Infotech's valuation stands out starkly; for instance, Redington has a PE ratio of 16.61 and an EV to EBITDA of 9.85, while Tejas Networks, which is rated attractive, shows a PE of 58.85 and an EV to EBITDA of 14.45. These comparisons further reinforce the notion that Aditya Infotech is overvalued relative to its peers. Additionally, the company's recent stock performance has lagged behind the Sensex, with a 1-week return of -7.58% compared to the Sensex's -1.84%, underscoring potential concerns regarding its market valuation.