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 market value. The company is currently considered overvalued. Key ratios include a PE Ratio of 21.69, an EV to EBIT of 19.33, and a ROE of 7.21%. In comparison to peers, TCS has a PE Ratio of 23.25 and an EV to EBITDA of 16.4, while Infosys shows a PE Ratio of 23.47 and an EV to EBITDA of 15.43, both indicating that Niks Technology is trading at a premium relative to these competitors. Despite a recent positive stock return of 2.48% over the past week compared to the Sensex's 0.88%, the longer-term performance shows a decline of 15.58% over the past year, reinforcing the view that the stock may be overvalued in the current market context.