Is Niks Technology overvalued or undervalued?

As of 15 October 2025, Niks Technology's valuation grade has moved from fair to expensive, indicating a shift in its perceived market value. The company is currently overvalued, with a PE ratio of 48.00, a Price to Book Value of 3.46, and an EV to EBIT of 19.24. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Niks Technology's PE ratio significantly exceeds that of TCS at 21.36 and Infosys at 22.46, both of which are considered more attractively valued. Additionally, Niks Technology's EV to EBITDA ratio of 19.24 is higher than that of HCL Technologies, which stands at 5.77, further emphasizing its overvaluation. Notably, Niks Technology has underperformed against the Sensex in the year-to-date period, with a return of -6.86% compared to the Sensex's 5.72%, reinforcing the notion that the stock may not justify its current price.