Is Niks Technology overvalued or undervalued?

As of 30 October 2025, Niks Technology's valuation grade has moved from risky to expensive, indicating a significant shift in perception. The company is currently deemed overvalued, with a PE ratio of 50.40, a Price to Book Value of 3.63, and an EV to EBITDA ratio of 20.32. 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 is substantially higher than that of TCS at 21.85 and Infosys at 22.06, both of which are considered attractive and fair, respectively. Additionally, while Niks Technology has a ROCE of 16.74% and ROE of 7.21%, these figures do not justify its high valuation relative to its peers. Recent stock performance shows that Niks Technology has underperformed the Sensex on a year-to-date basis, with a return of -2.2% compared to the Sensex's 8.02%, reinforcing the notion that the stock may be overvalued.