Is Avance Tech. overvalued or undervalued?

As of 1 July 2025, the valuation grade for Avance Tech. has moved from expensive to very expensive. The company appears to be overvalued based on its current metrics, with a PE ratio of 32.91, an EV to EBIT of 41.31, and a PEG ratio of 3.82. These ratios indicate that the stock is trading at a premium compared to its earnings growth potential.
In comparison to its peers, Avance Tech. stands out with a significantly higher PE ratio than PTC India, which has a PE of 9.28 and is rated very attractive, suggesting a stark contrast in valuation. Additionally, Lloyds Enterprises is also classified as very expensive with a PE ratio of 197.37, further emphasizing the inflated valuation of Avance Tech. The company's recent stock performance has outpaced the Sensex over the past week and month, but its longer-term returns, particularly a 12.87% decline over the past year, highlight the risks associated with its current valuation.