Is Tejas Networks overvalued or undervalued?

As of 28 April 2025, the valuation grade for Tejas Networks has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 28.73, an EV to EBITDA of 12.26, and a PEG Ratio of 0.05, which suggests strong growth potential relative to its price.
In comparison to its peers, Tejas Networks stands out with its low PEG Ratio of 0.05, while other companies in the sector may exhibit higher ratios, indicating that Tejas is priced favorably for its growth prospects. Notably, the company has a ROCE of 14.07% and an ROE of 11.61%, which further supports its valuation as attractive. Despite a challenging year with a YTD return of -38.64%, the stock has outperformed the Sensex over the past week and month, reinforcing the notion that it may be undervalued in the current market environment.