Is Sterlite Tech. overvalued or undervalued?

As of 18 November 2025, Sterlite Tech. has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 1404.27, an EV to EBITDA of 14.28, and a Price to Book Value of 2.73. Compared to its peers, Sterlite Tech. stands out with a significantly higher PE ratio than Polycab India at 46.86 and Havells India at 63.03, indicating that investors are paying a premium for its earnings relative to these competitors.
The company's return on equity (ROE) is notably low at 0.19%, and its return on capital employed (ROCE) is just 5.09%, which raises concerns about its profitability compared to peers like R R Kabel, which is rated attractive. Additionally, while Sterlite Tech. has outperformed the Sensex in the short term with a year-to-date return of 34.41% versus the Sensex's 8.36%, its long-term performance over three and five years has lagged significantly behind the index. This combination of high valuation ratios and low profitability metrics suggests that Sterlite Tech. is currently overvalued.