Is Sterlite Tech. overvalued or undervalued?

As of 14 November 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, with a PE ratio of 1448.81, an EV to EBIT of 40.79, and a ROE of just 0.19%.
In comparison with peers, Sterlite Tech. stands out with its exorbitant PE ratio, while Polycab India, classified as very expensive, has a PE of 46.65, and Havells India, rated as fair, has a PE of 63.03. Notably, the high valuation metrics of Sterlite Tech. suggest it is not only overvalued relative to its peers but also reflects a concerning return on capital employed at 5.09%. Despite recent stock performance showing a 38.67% return year-to-date compared to the Sensex's 8.22%, the underlying valuation metrics raise significant red flags for potential investors.