Is Elnet Technolog overvalued or undervalued?

As of 17 June 2025, Elnet Technolog's valuation grade has moved from expensive to fair, indicating a shift in the market's perception of its value. The company is currently fairly valued. Key ratios include a PE ratio of 7.75, an EV to EBITDA of 1.00, and a Price to Book Value of 0.87, which suggest that the stock is trading at reasonable multiples compared to its earnings and assets.
In comparison to peers, Elnet Technolog's PE ratio is significantly lower than TCS, which has a PE of 26.2, and Infosys, with a PE of 25.51, both of which are considered attractive. This positions Elnet as an appealing option within its industry, particularly given its strong ROCE of 37.44% and ROE of 11.23%. While the stock has underperformed the Sensex year-to-date, with a return of -17.31% compared to the Sensex's 4.41%, its long-term performance over three and five years remains robust, suggesting potential for recovery.