Is Esconet overvalued or undervalued?

As of 23 October 2025, Esconet's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 46.09, an EV to EBITDA of 36.81, and a PEG ratio of 2.12. Compared to its peers, TCS has a more attractive PE ratio of 22.12, while Infosys stands at a PE of 22.58, highlighting Esconet's relatively high valuation metrics.
In the context of its industry, Esconet's EV to EBIT of 40.73 and ROCE of 19.44% suggest it is generating a decent return on capital, but the elevated valuation ratios may imply limited upside potential. Notably, Esconet's stock has underperformed the Sensex over the past year, with a return of -37.4% compared to the Sensex's 5.96%, reinforcing the notion that the stock may be fairly valued at its current levels.