Is Sterlite Tech. overvalued or undervalued?

Sep 13 2025 08:04 AM IST
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As of September 12, 2025, Sterlite Tech. is considered overvalued with a PE ratio of -449.29 and an EV to EBIT of 38.41, indicating significant profitability concerns compared to peers like Polycab India and Havells India, despite a strong year-to-date return of 39.78%.
As of 12 September 2025, the valuation grade for Sterlite Tech. has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently considered overvalued. Key ratios highlight this assessment: the PE ratio stands at an alarming -449.29, the EV to EBIT is 38.41, and the ROE is -3.57%. These figures suggest significant concerns about profitability and valuation relative to earnings.

In comparison to its peers, Sterlite Tech. shows a stark contrast; for instance, Polycab India has a PE ratio of 49.24 and an EV to EBITDA of 33.02, while Havells India reports a PE of 69.97 and an EV to EBITDA of 46.16. This peer analysis underscores that Sterlite Tech. is not only lagging in profitability metrics but is also priced unfavorably compared to competitors. Despite a strong year-to-date return of 39.78%, which outperformed the Sensex's 4.82%, the overall valuation metrics suggest that the stock is not justified at its current price of 119.70.
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