Is Cell Point overvalued or undervalued?

As of 6 November 2025, the valuation grade for Cell Point has moved from fair to expensive, indicating a shift in perception regarding its market position. The company is currently overvalued based on its high PE ratio of 91.67, which significantly exceeds the industry average, and an EV to EBITDA ratio of 9.92, suggesting that investors are paying a premium for its earnings before interest, taxes, depreciation, and amortization. Additionally, the return on capital employed (ROCE) stands at a mere 3.63%, reflecting inefficiencies in generating returns from its capital.
In comparison to its peers, Cell Point's valuation metrics are starkly higher; for instance, Elitecon International has a PE ratio of 392.28, while PTC India, considered very attractive, has a PE of just 7.83. This stark contrast highlights Cell Point's overvaluation in the retailing sector. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -32.15% compared to the Sensex's 7.89%, reinforcing the notion that Cell Point's current market price may not be justified.