Is Niks Technology overvalued or undervalued?

As of 19 September 2025, Niks Technology's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios include a PE ratio of 21.69, an EV to EBIT of 19.33, and a PEG ratio of 0.55, which suggests that while the growth potential may be appealing, the current price does not justify the earnings relative to its peers. In comparison to its industry peers, TCS has a PE ratio of 23.25 and an EV to EBITDA of 16.4, while Infosys shows a PE of 23.47 and an EV to EBITDA of 15.43. These figures highlight that Niks Technology is trading at a lower valuation multiple than its more established competitors, yet still classified as expensive. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -6.47% compared to the Sensex's 5.74%, reinforcing the notion that Niks Technology may not be a favorable investment at its current price point.