Is KPIT Technologi. overvalued or undervalued?

As of 26 June 2025, the valuation grade for KPIT Technologies has moved from expensive to fair. This indicates a more favorable assessment of its market position. The company is currently fairly valued based on its key financial ratios, including a PE ratio of 41.65, an EV to EBITDA of 27.60, and a PEG ratio of 1.01.
In comparison to its peers, KPIT Technologies' PE ratio is significantly higher than that of TCS at 25.65 and Infosys at 25.12, both of which are rated attractive or fair. This suggests that while KPIT is fairly valued, it may still be perceived as relatively expensive compared to its more established competitors. Notably, KPIT has shown a strong ROCE of 57.13% and ROE of 28.83%, indicating efficient use of capital and strong profitability. Despite recent underperformance against the Sensex, with a year-to-date return of -13.05% compared to the Sensex's 7.19%, the overall valuation suggests that KPIT Technologies is fairly valued within its industry context.