Is Southern Infosys overvalued or undervalued?

As of 30 May 2025, the valuation grade for Southern Infosys has moved from fair to expensive, indicating that the company is currently overvalued. Key ratios include a PE ratio of 11.42, an EV to EBIT of 8.10, and a ROE of 4.53%. In comparison to its peers, Tata Consultancy Services Ltd. has a significantly higher PE ratio of 25.23, while Infosys Ltd. shows a PE of 24.32, both suggesting that Southern Infosys is lagging behind in valuation metrics.
The company's current valuation appears excessive when considering its performance relative to the industry, particularly with a PEG ratio of 0.01, which is substantially lower than its peers. Furthermore, despite a recent strong stock performance with a 1-week return of 8.18%, the year-to-date return of -9.3% compared to the Sensex's 5.61% indicates underlying challenges. Overall, Southern Infosys is assessed as overvalued in the current market context.