Is E2E Networks overvalued or undervalued?

As of April 8, 2024, E2E Networks is considered overvalued with a high PE ratio of 114.85 and elevated EV to EBITDA ratio of 43.14, significantly exceeding industry averages, despite a strong long-term return of 63.17% and a year-to-date decline of 32.88%.

As of 8 April 2024, E2E Networks has moved from a risky to a very expensive valuation grade. The company is currently overvalued, as indicated by its high PE ratio of 114.85, an EV to EBITDA ratio of 43.14, and a PEG ratio of 2.00. These metrics suggest that the stock is trading at a premium compared to its earnings growth potential.<BR><BR>In comparison to its peers, E2E Networks stands out with a significantly higher PE ratio than the industry average, which typically hovers around 20-30 for similar companies. Additionally, its EV to EBITDA ratio is also elevated compared to competitors, indicating that investors are paying a high price for each unit of earnings before interest, taxes, depreciation, and amortization. While the company has shown impressive returns over the long term, with a 1-year return of 63.17%, its recent performance has lagged behind the Sensex, with a year-to-date decline of 32.88%.

When is the next results date for E2E Networks?

No Upcoming Board Meetings

Has E2E Networks declared dividend?

No Dividend History Available

Who are the peers of the E2E Networks?

E2E Networks' peers include NELCO, Rashi Peripheral, D-Link India, Control Print, TVS Electronics, HCL Infosystems, DC Infotech, Panache Digilife, and Bharat Global. E2E Networks leads in growth and returns, with a 1-year return of 48.84%, while Rashi Peripheral has the lowest return at -28.47%.

Peers: The peers of E2E Networks are NELCO, Rashi Peripheral, D-Link India, Control Print, TVS Elec., HCL Infosystems, DC Infotech, Panache Digilife, Bharat Global.<BR><BR>Quality Snapshot: Excellent management risk is observed at DC Infotech and Vintron Info., while Average management risk is found at E2E Networks, NELCO, Rashi Peripheral, D-Link India, Control Print, TVS Elec., and HCL Infosystems. Below Average management risk is noted for HCL Infosystems and Panache Digilife, while Bharat Global does not qualify. Growth is excellent at E2E Networks and Vintron Info., good at Rashi Peripheral and DC Infotech, and below average at NELCO, Control Print, TVS Elec., HCL Infosystems, and Panache Digilife. Bharat Global does not qualify for growth. Capital structure is excellent at D-Link India, Control Print, and TVS Elec., good at E2E Networks, NELCO, and DC Infotech, average at Rashi Peripheral, and below average at HCL Infosystems and Panache Digilife, with Bharat Global not qualifying.<BR><BR>Return Snapshot: The peer with the highest 1-year return is E2E Networks at 48.84%, while the lowest is Rashi Peripheral at -28.47%. E2E Networks' return is significantly higher than Rashi Peripheral's. Additionally, the six-month returns for NELCO, Rashi Peripheral, HCL Infosystems, DC Infotech, and Panache Digilife are negative.

Who are in the management team of E2E Networks?

As of March 2022, the management team of E2E Networks includes Tarun Dua (Chairman & Managing Director), Srishti Baweja (Whole Time Director & CFO), and three Independent Directors: Varun Pratap Rajda, Namank Sarawagi, and Aditya Bhushan, along with Richa Gupta (Company Secretary). They oversee the company's operations and strategic direction.

As of March 2022, the management team of E2E Networks includes:<BR><BR>- Tarun Dua, who serves as the Chairman & Managing Director.<BR>- Srishti Baweja, who is the Whole Time Director & CFO.<BR>- Varun Pratap Rajda, an Independent Director.<BR>- Namank. Sarawagi, also an Independent Director.<BR>- Aditya Bhushan, another Independent Director.<BR>- Richa Gupta, who holds the position of Company Secretary. <BR><BR>This team is responsible for overseeing the company's operations and strategic direction.

What does E2E Networks do?

E2E Networks Ltd is an Indian hyperscaler specializing in advanced Cloud GPU infrastructure, with a market cap of INR 4,693 Cr and reported net sales of 335 Cr and net profit of 136 Cr for the quarter ending March 2025. The company was founded in 2009 and became public in 2018.

Overview: <BR>E2E Networks Ltd is a leading hyperscaler from India focused on advanced Cloud GPU infrastructure, operating in the IT - Hardware industry within the small-cap market segment.<BR><BR>History: <BR>E2E Networks Limited was originally incorporated as a Private Limited Company in 2009 and was converted into a Public Limited Company on March 14, 2018. The most recent quarterly results reported net sales and net profit for the period ending March 2025.<BR><BR>Financial Snapshot: <BR>Net Sales: 335 Cr (Quarterly Results - Mar 2025) <BR>Net Profit: 136 Cr (Quarterly Results - Mar 2025) <BR>Market Cap: INR 4,693 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 100.00 <BR>Industry P/E: 31 <BR>Dividend Yield: 0.00% <BR>Debt-Equity: -0.81 <BR>Return on Equity: 2.98% <BR>Price to Book: 2.96 <BR><BR>Contact Details: <BR>Address: Awfis 1-Flr A-24/9 Mathura Rd, Mohan Coop Indl Est Saidabad New Delhi New Delhi : 110044 <BR>Tel: 91-11-3001 8095 <BR>Email: sirshti.baweja@e2enetworks.com <BR>Website: http://www.e2enetworks.com

Who are the top shareholders of the E2E Networks?

The top shareholders of E2E Networks are Tarun Dua with 40.37%, and Larsen and Toubro Limited with 14.92%. Non-institutional investors hold the majority of shares, while mutual funds and foreign institutional investors hold 0.84% and 3.82%, respectively.

The top shareholders of E2E Networks include Tarun Dua, who holds the highest promoter share at 40.37%. Additionally, Larsen And Toubro Limited is the highest public shareholder with a stake of 14.92%. The majority of the company's shares are held by non-institutional investors, with pledged promoter holdings at 56.2535%. Mutual funds hold a small portion at 0.84%, while foreign institutional investors (FIIs) account for 3.82% of the shares. Individual investors collectively hold 27.3% of the company.

How big is E2E Networks?

As of 24th July, E2E Networks Ltd has a market capitalization of 4,735.00 Cr, with recent net sales of 158.74 Cr and a net profit of 34.51 Cr. The balance sheet for March 2024 shows shareholder's funds of 70.85 Cr and total assets of 255.24 Cr.

As of 24th July, E2E Networks Ltd has a market capitalization of 4,735.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest four quarters, E2E Networks reported Net Sales of 158.74 Cr and a Net Profit of 34.51 Cr.<BR><BR>The latest annual period for the balance sheet is March 2024, showing Shareholder's Funds of 70.85 Cr and Total Assets of 255.24 Cr.

Are E2E Networks latest results good or bad?

E2E Networks' latest results are concerning, showing a 21.30% revenue increase to ₹43.80 crores but a significant net loss of ₹13.46 crores, a decline from last year's profit. The operating margin has also dropped sharply, indicating serious profitability challenges despite some demand recovery.

E2E Networks' latest results indicate a challenging situation for the company. While there was a notable increase in revenue, with net sales growing by 21.30% quarter-on-quarter to ₹43.80 crores, this growth is overshadowed by a significant net loss of ₹13.46 crores, which marks a drastic decline from a profit of ₹12.15 crores in the same quarter last year. This represents a concerning year-on-year deterioration of 210.78%.<BR><BR>The operating margin has also suffered, dropping to 41.10% from 66.12% a year ago, primarily due to a sharp increase in depreciation expenses, which surged by 240.49% year-on-year to ₹42.80 crores. This depreciation now nearly equals the company's total revenue for the quarter, creating an unsustainable profitability dynamic.<BR><BR>Overall, while the revenue growth suggests some demand recovery, the substantial losses and declining profitability metrics indicate that E2E Networks is currently facing significant operational challenges. Therefore, the latest results can be characterized as bad, reflecting a critical need for the company to address its profitability issues moving forward.

How has been the historical performance of E2E Networks?

E2E Networks has experienced significant growth from March 2020 to March 2025, with net sales increasing from 25.10 Cr to 163.96 Cr, and profitability improving with profit after tax rising to 47.49 Cr from a loss of 9.31 Cr. The company's total assets surged to 2,580.74 Cr, reflecting strong operational efficiency and a positive cash position.

Answer:<BR>The historical performance of E2E Networks shows significant growth in net sales and profitability over the years, culminating in the fiscal year ending March 2025.<BR><BR>Breakdown:<BR>E2E Networks has demonstrated a robust increase in net sales, rising from 25.10 Cr in March 2020 to 163.96 Cr in March 2025. The total operating income followed a similar upward trajectory, reaching 163.96 Cr in March 2025, compared to just 33.75 Cr in March 2019. Operating profit (PBDIT) also saw substantial growth, climbing to 136.09 Cr in March 2025 from a mere 1.01 Cr in March 2020. Profit before tax increased to 62.79 Cr in March 2025, up from a loss of 9.31 Cr in March 2020, while profit after tax reached 47.49 Cr, showcasing a strong recovery and profitability. The company's total assets surged to 2,580.74 Cr in March 2025, significantly higher than 30.81 Cr in March 2020, with total liabilities also increasing to 2,580.74 Cr. Cash flow from operating activities improved to 88.00 Cr in March 2025, reflecting strong operational efficiency, while net cash inflow reached 455.00 Cr, indicating a positive cash position. Overall, E2E Networks has shown impressive growth across all key financial metrics over the past several years.

Should I buy, sell or hold E2E Networks?

Is E2E Networks technically bullish or bearish?

As of December 2, 2025, E2E Networks shows a mildly bearish trend, indicated by bearish MACD and Bollinger Bands on weekly and monthly charts, despite a mildly bullish signal from daily moving averages.

As of 2 December 2025, the technical trend has changed from sideways to mildly bearish. The current technical stance for E2E Networks is mildly bearish. Key indicators driving this stance include a bearish MACD on both the weekly and monthly time frames, along with bearish signals from Bollinger Bands across both time frames. The KST and Dow Theory also indicate a mildly bearish outlook on both weekly and monthly charts. Although the daily moving averages show a mildly bullish signal, the overall trend and momentum suggest weakness in the stock's performance.

Which are the latest news on E2E Networks?

Why is E2E Networks falling/rising?

As of 04-Dec, E2E Networks Ltd's stock price is currently at 2,204.60, reflecting a 2.9% increase due to heightened investor participation. However, the stock has underperformed long-term with a -49.41% return over the past year and shows bearish trends, raising caution despite the recent rise.

As of 04-Dec, E2E Networks Ltd's stock price is rising, currently at 2,204.60, reflecting a change of 62.2 or 2.9% increase. This rise can be attributed to a notable increase in investor participation, as evidenced by a delivery volume of 84.8k on December 3, which has surged by 174.64% compared to the 5-day average. Additionally, the stock has outperformed its sector by 2.93% today.<BR><BR>However, it is important to note that despite the current rise, the stock has been underperforming in the long term. Over the past year, E2E Networks has generated a return of -49.41%, significantly lagging behind the market, which has seen a return of 6.40%. The company has also reported poor financial performance, with operating profit declining at an annual rate of -262.32% over the last five years. Furthermore, the recent quarterly results showed a negative profit after tax of Rs -13.46 crore, which is a drastic fall of -256.0% compared to the previous four-quarter average.<BR><BR>The stock is trading below its moving averages across various time frames, indicating a bearish trend. Additionally, 60.39% of promoter shares are pledged, which can exert downward pressure on the stock price in a declining market. Despite the short-term rise, the overall outlook remains cautious due to these underlying negative factors.