Is Niks Technology overvalued or undervalued?

As of 26 September 2025, Niks Technology's valuation grade has moved from fair to expensive, indicating a shift in its perceived value. The company is currently overvalued based on its financial metrics, with a PE ratio of 21.69, an EV to EBIT of 19.33, and a PEG ratio of 0.55. These ratios suggest that while the company has some growth potential, its current pricing does not adequately reflect its earnings and cash flow capabilities. In comparison to its peers, TCS has a PE ratio of 21.3 and an EV to EBITDA of 14.97, while Infosys stands at a PE of 22.07 with an EV to EBITDA of 14.47, both indicating more attractive valuations relative to Niks Technology. Additionally, HCL Technologies, with a PE of 22.3, also presents a more favorable investment case. Notably, Niks Technology's recent stock performance shows a decline of 11.14% over the past year, contrasting with the Sensex's decline of only 6.30%, further reinforcing the notion that the stock may be overvalued in the current market environment.