Is Umiya Buildcon overvalued or undervalued?

As of 27 June 2025, Umiya Buildcon's valuation grade has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued based on its PE ratio of 25.19, EV to EBIT of 16.80, and EV to EBITDA of 14.04. In comparison to peers, Redington also carries an expensive valuation with a PE of 22.71, while Tejas Networks is rated very attractive with a higher PE of 28.42, suggesting that Umiya Buildcon's valuation may not be justified in the current market context.
The company's financial metrics, including a ROCE of 8.27% and ROE of 7.90%, further support the conclusion of overvaluation, especially given the competitive landscape in the telecom equipment sector. While Umiya Buildcon has shown strong historical returns, outperforming the Sensex over the past five years, the current price of 79.85 appears to reflect a premium that may not be sustainable, warranting caution for potential investors.