Is KPIT Technologi. overvalued or undervalued?

As of 18 July 2025, the valuation grade for KPIT Technologies has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 41.34, a Price to Book Value of 11.92, and an EV to EBITDA ratio of 27.38. In comparison to its peers, TCS has a more attractive PE ratio of 23.42, while Infosys is fairly valued with a PE of 24.67, indicating that KPIT Technologies is priced higher relative to these competitors.
Despite its fair valuation, KPIT Technologies has shown a significant decline in stock performance, with a year-to-date return of -13.7%, while the Sensex has gained 4.63% in the same period. This underperformance, coupled with a high ROCE of 57.13% and ROE of 28.83%, suggests that while the company is fairly valued, it may face challenges in justifying its premium valuation against its peers in the near term.