Is Logica Infoway overvalued or undervalued?

As of 26 August 2025, the valuation grade for Logica Infoway has moved from very expensive to fair. The company is currently fairly valued, with a PE ratio of 35.58, an EV to EBITDA of 20.57, and a ROE of 17.15%. In comparison to peers, Avenue Supermarts and Trent are both classified as very expensive, with PE ratios of 113.16 and 118.35, respectively, highlighting Logica Infoway's relatively more attractive valuation.
Despite the fair valuation, Logica Infoway has faced challenges, as evidenced by its year-to-date return of -4.48%, contrasting with the Sensex's gain of 3.39%. This underperformance over the past year, where the stock declined by 19.47%, suggests that while the company is fairly valued, it may still face headwinds in the market.