Is Trans India overvalued or undervalued?

As of 16 July 2025, the valuation grade for Trans India has moved from very expensive to expensive. The company is currently considered overvalued based on its high valuation ratios, including a PE ratio of 83.03, an EV to EBITDA of 59.19, and a Price to Book Value of 4.16. These figures indicate that the stock is priced significantly higher than its earnings and book value, suggesting limited upside potential.
In comparison to its peers, Trans India stands out with a much higher PE ratio than Redington, which has a PE of 21.74, and Tejas Networks, which, despite being attractive, has a PE of 65.95. The disparity in these ratios highlights that Trans India is trading at a premium relative to its industry peers. Additionally, the company's recent stock performance has been poor, with a 1-year return of -55.85%, contrasting sharply with the Sensex's modest gain of 2.38% over the same period, reinforcing the notion that the stock may not justify its current valuation.