Is Indegene overvalued or undervalued?

As of 6 June 2025, Indegene's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued given its strong performance metrics, including a PE ratio of 34.47, an EV to EBITDA of 23.31, and a remarkable ROCE of 43.13%. These ratios suggest that while the stock is trading at a premium compared to some peers, its operational efficiency and profitability justify the valuation.
In comparison to its peers, Tata Consultancy Services has a PE ratio of 25.23 and an EV to EBITDA of 17.63, while Infosys stands at a PE of 24.32 and an EV to EBITDA of 15.83. Indegene's higher ratios reflect its growth potential and market position within the healthcare services industry. Despite a recent decline in stock performance relative to the Sensex over the past week, the company's year-to-date return of 7.49% outpaces the Sensex's 3.82%, reinforcing the notion that Indegene is positioned for future growth and is currently undervalued.