Is Trans India overvalued or undervalued?

As of 7 August 2025, the valuation grade for Trans India has moved from very expensive to expensive, indicating a slight improvement in its valuation outlook. However, the company remains overvalued based on its current financial metrics. The PE ratio stands at a staggering 85.68, while the EV to EBITDA ratio is 60.58, both significantly higher than industry peers. Additionally, the ROCE is only 3.99%, and the ROE is at 5.01%, suggesting that the company is not generating adequate returns relative to its valuation.
In comparison, Redington, which is rated as fair, has a PE ratio of 16.77 and an EV to EBITDA of 9.93, highlighting the stark difference in valuation. Tejas Networks, rated as attractive, has a PE of 58.01 and an EV to EBITDA of 14.29. Given these comparisons and the high valuation ratios, Trans India is assessed to be overvalued. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -44.07% compared to the Sensex's 3.18%, reinforcing the notion that its current valuation is not justified.