Is Infonative Solu. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Infonative Solutions has moved from fair to expensive, indicating that the company is overvalued. The key ratios reflect this assessment, with a PE ratio of 7.96, an EV to EBIT of 6.57, and an EV to EBITDA of 6.00. These figures suggest that, despite a strong return on capital employed (ROCE) of 39.40% and return on equity (ROE) of 37.07%, the company's valuation metrics are not competitive when compared to peers such as Altius Telecom, which has a PE ratio of 55.48, and Sagility, which is rated fair with a PE of 30.79.
Infonative Solutions appears to be overvalued relative to its industry peers, especially considering the significant premium at which competitors are valued. Additionally, while the company's stock has outperformed the Sensex in the short term, with a 1-week return of 26.86% compared to a -0.32% return for the Sensex, this does not justify the current valuation level. Overall, the analysis suggests that investors should approach Infonative Solutions with caution given its expensive valuation relative to its financial performance and peer comparisons.