Is Allied Digital overvalued or undervalued?

As of 10 November 2025, the valuation grade for Allied Digital has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company is still considered overvalued. Key ratios reveal a PE ratio of 23.67, an EV to EBIT of 3.11, and a Price to Book Value of 0.16, which suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to peers, TCS has a more attractive PE ratio of 21.77, while Infosys stands at 22.37, both indicating better value propositions. Additionally, HCL Technologies, with a PE of 24.63, is also in a similar valuation range. The recent stock performance of Allied Digital has been underwhelming, with a year-to-date return of -28.68%, significantly lagging behind the Sensex's 6.91% return, reinforcing the notion that the stock may not be a favorable investment at its current price.