Is Moschip Tech. overvalued or undervalued?

As of 9 June 2025, the valuation grade for Moschip Tech. has moved from expensive to very expensive, indicating a significant shift in its perceived market value. The company is currently considered overvalued based on its high valuation multiples, including a PE ratio of 112.82, an EV to EBITDA ratio of 68.14, and a Price to Book Value of 12.88. These figures starkly contrast with peers such as TCS, which has a PE ratio of 25.51, and Infosys, with a PE of 24.46, highlighting the substantial premium at which Moschip Tech. is trading.
In comparison to its industry peers, Moschip Tech.'s financial metrics suggest that it is not only overvalued but also lacks the profitability indicators typically associated with such high valuations, as evidenced by its ROCE of 6.22% and ROE of 5.72%. The company's stock has shown strong short-term performance, with a 1-month return of 31.92%, significantly outpacing the Sensex's 3.76% return, but this does not mitigate the fundamental overvaluation concerns. Overall, Moschip Tech. appears to be overvalued in the current market environment.