Is Elnet Technolog overvalued or undervalued?

As of 21 July 2025, Elnet Technolog has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios, including a PE ratio of 8.00, an EV to EBITDA of 1.30, and a PEG ratio of 8.00. In comparison to peers, Elnet's valuation metrics are significantly lower than those of TCS, which has a PE ratio of 23.19, and Infosys, with a PE ratio of 24.64, indicating that Elnet is not aligned with the market expectations for growth and profitability in its sector.
Despite a strong ROCE of 37.44% and a reasonable Price to Book Value of 0.90, the overall valuation suggests that Elnet Technolog is not positioned favorably against its competitors. The company's stock has underperformed relative to the Sensex over the past year, with a return of -5.15% compared to the Sensex's 1.98%, reinforcing the notion that the current market price may not reflect its intrinsic value.