Is Uniinfo Telecom overvalued or undervalued?

As of 15 September 2025, the valuation grade for Uniinfo Telecom has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly given its PE ratio of -19.03, a Price to Book Value of 0.58, and an EV to EBITDA of 22.41. These ratios suggest that the stock is trading at a discount relative to its intrinsic value, especially when compared to peers like Indus Towers, which has a PE ratio of 9.93, and HFCL, with a more favorable EV to EBITDA of 38.11.
Despite the company's recent stock performance trailing the Sensex, with a year-to-date return of -47.02% compared to the Sensex's 6.02%, the underlying valuation metrics indicate that Uniinfo Telecom presents a compelling investment opportunity. The negative ROE and ROCE figures highlight operational challenges, yet the low valuation ratios suggest that the market may be undervaluing the company's potential for recovery and growth in the telecom sector.