Is Axis Solution overvalued or undervalued?

As of 8 August 2025, the valuation grade of Axis Solution has moved from risky to does not qualify, indicating a significant shift in its perceived financial health. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 2.85 and an EV to EBITDA ratio of 2.96, which are starkly lower than its peers. For comparison, Thomas Cook (I) has a PE ratio of 28.29 and an EV to EBITDA of 14.16, while Easy Trip Planning shows a PE of 30.11 and an EV to EBITDA of 21.52.
Axis Solution's ROCE stands at an impressive 102.49% and ROE at 140.11%, but these high returns do not justify its current valuation given the low multiples. The stock has shown a remarkable return of 349.25% over the last five years, significantly outperforming the Sensex's 109.93% return in the same period, yet this does not align with the company's current valuation metrics, reinforcing the conclusion that Axis Solution is overvalued.