Is DC Infotech overvalued or undervalued?

As of 22 August 2025, the valuation grade for DC Infotech has moved from fair to attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued, supported by a PE ratio of 21.77, an EV to EBITDA of 13.35, and a ROCE of 25.63%. In comparison to its peers, Redington has a PE of 16.8 and an EV to EBITDA of 9.95, while Tejas Networks, categorized as attractive, shows a significantly higher PE of 62.64.
Despite the attractive valuation, DC Infotech has faced challenges in stock performance, with a year-to-date return of -45.81%, contrasting sharply with the Sensex's positive return of 4.05% over the same period. This divergence suggests that the market may not yet fully recognize the company's potential, reinforcing the conclusion that DC Infotech is undervalued relative to its fundamentals and peer group.