Is Kody Technolab overvalued or undervalued?

As of 2 June 2025, Kody Technolab's valuation grade has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 64.39, an EV to EBITDA ratio of 45.22, and a PEG ratio of 0.25. These figures starkly contrast with its peers, such as Tata Consultancy Services Ltd., which has a PE ratio of 25.23 and an EV to EBITDA of 17.63, and Infosys Ltd., with a PE ratio of 24.32 and an EV to EBITDA of 15.83.
The substantial premium at which Kody Technolab is trading raises concerns about its sustainability, especially given its recent stock performance, which has seen a year-to-date decline of 47.16%, compared to a 6.23% gain in the Sensex. This disparity further emphasizes the overvaluation, suggesting that investors may be overly optimistic about the company's future prospects despite its impressive ROCE of 78.49% and ROE of 47.48%.