Is SIS overvalued or undervalued?

As of 7 November 2025, SIS has moved from an attractive to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 88.94, an EV to EBIT of 13.42, and an EV to EBITDA of 6.70. In comparison, its peers such as Altius Telecom, which is rated very attractive, has a PE ratio of 56.22, while Sagility, rated fair, has a PE ratio of 30.38, indicating that SIS is significantly more expensive relative to these competitors.
The company's financial performance is concerning, with a return on capital employed (ROCE) of only 0.74% and a return on equity (ROE) of 0.21%. Additionally, SIS has underperformed the Sensex in various time frames, particularly with a year-to-date return of -7.97% compared to the Sensex's 6.50%. This further supports the conclusion that SIS is overvalued in the current market environment.