The Indian stock market in 2025 is witnessing significant momentum across select high-growth sectors. While some stocks are trading well above their intrinsic value, their growth potential continues to attract aggressive investors. These overvalued stocks are high-risk and high-reward bets — often delivering outsized returns when timed well, but equally prone to sharp corrections.
For investors with high risk tolerance, identifying the best overvalued stocks in India could present lucrative opportunities. However, careful evaluation is essential, as overvaluation can sometimes stem from hype rather than fundamental strength.
What Are Overvalued Stocks?
Overvalued stocks are securities trading at a price higher than their fair market value based on fundamentals such as revenue, earnings, and asset base.
Example: If a stock’s fair value is ₹1,000 but market sentiment pushes it to ₹2,000 without proportional earnings growth, it is considered overvalued.
Despite their stretched valuations, some of the most overvalued stocks have consistently rewarded investors, particularly when backed by strong business models and growth prospects.
Top Overvalued Stocks in India by Market Capitalisation
The table below lists the leading overvalued stocks in India for 2025, along with their current market metrics.
| Stock Name | CMP (₹) | Market Cap (₹ Cr) | 52-Week High (₹) | 52-Week Low (₹) |
|---|---|---|---|---|
| Trent Ltd. | 5,356 | 1,90,515 | 8,345.00 | 4,488.00 |
| Max Healthcare Institute Ltd. | 1,271.10 | 1,23,662 | 1,314.30 | 836.60 |
| Dixon Technologies India Ltd. | 16,513.00 | 99,901 | 19,148.90 | 11,066.75 |
| Jio Financial Ltd. | 326.55 | 2,07,435 | 363.00 | 198.65 |
| Adani Green Energy Ltd. | 957.55 | 1,55,420 | 2,091.00 | 758.00 |
| Info Edge Ltd. | 1,322.40 | 85,688 | 1,825.78 | 1,157.00 |
| Bharti Airtel Ltd. | 1,929.70 | 11,57,598 | 2,045.80 | 1,422.60 |
| Havells India Ltd. | 1,488.70 | 93,367 | 2,106.00 | 1,381.30 |
| Tata Steel Ltd. | 158.66 | 1,98,114 | 170.18 | 122.62 |
| Avenue Supermarts Ltd. | 4,242.00 | 2,75,976 | 5,484.85 | 3,340.00 |
Company Spotlights
1. Trent Ltd.
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Founded: 1952 | HQ: Mumbai, Maharashtra
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Part of the Tata Group, Trent operates popular retail brands like Westside, Zudio, and Star Market. FY25 saw 5.2x revenue growth and 10.3x PAT growth, driven by aggressive store expansion and strong brand positioning.
2. Max Healthcare Institute Ltd.
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Founded: 2001 | HQ: New Delhi
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Operates a network of 22 hospitals, including super-speciality facilities. Maintains a low debt-to-equity ratio and strong interest coverage, supporting its expansion across northern India.
3. Dixon Technologies India Ltd.
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Founded: 1993 | HQ: Noida, Uttar Pradesh
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India’s largest electronics manufacturing services (EMS) provider. Expanding into drones and acquiring a 51% stake in Q Tech India to diversify its portfolio.
4. Jio Financial Ltd.
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Founded: 1999 | HQ: Mumbai
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Digital-first financial services firm offering loans, payments, investments, and insurance. Reported ₹325 crore net profit in Q1 FY26, up 4% YoY, with revenue growth of 46.6%.
5. Adani Green Energy Ltd.
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Founded: 2015 | HQ: Ahmedabad, Gujarat
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Leading renewable energy developer with a 2030 target of 50 GW capacity. Focused on large-scale solar and wind projects.
Overvalued Stocks by P/E Ratio
| Stock Name | CMP (₹) | Market Cap (₹ Cr) | P/E Ratio |
|---|---|---|---|
| Trent Ltd. | 5,356 | 1,90,515 | 119.02 |
| Max Healthcare Institute Ltd. | 1,271.10 | 1,23,662 | 114.48 |
| Dixon Technologies India Ltd. | 16,513.00 | 99,901 | 84.95 |
| Jio Financial Ltd. | 326.55 | 2,07,435 | 127.07 |
| Adani Green Energy Ltd. | 957.55 | 1,55,420 | 88.91 |
| Info Edge Ltd. | 1,322.40 | 85,688 | 91.72 |
| Bharti Airtel Ltd. | 1,929.70 | 11,57,598 | 31.05 |
| Havells India Ltd. | 1,488.70 | 93,367 | 66.42 |
| Tata Steel Ltd. | 158.66 | 1,98,114 | 43.87 |
| Avenue Supermarts Ltd. | 4,242.00 | 2,75,976 | 102.48 |
Performance Snapshot – 5-Year Returns
| Stock Name | CMP (₹) | Market Cap (₹ Cr) | 5-Year Returns |
|---|---|---|---|
| Trent Ltd. | 5,356 | 1,90,515 | 809.76% |
| Max Healthcare Institute Ltd. | 1,271.10 | 1,23,662 | 1,070.13% |
| Dixon Technologies India Ltd. | 16,513.00 | 99,901 | 901.01% |
| Jio Financial Services Ltd. | 326.55 | 2,07,435 | 22.52% |
| Adani Green Energy Ltd. | 957.55 | 1,55,420 | 136.99% |
| Info Edge Ltd. | 1,322.40 | 85,688 | 101.81% |
| Bharti Airtel Ltd. | 1,929.70 | 11,57,598 | 234.76% |
| Havells India Ltd. | 1,488.70 | 93,367 | 143.77% |
| Tata Steel Ltd. | 158.66 | 1,98,114 | 290.02% |
| Avenue Supermarts Ltd. | 4,242.00 | 2,75,976 | 95.07% |
Investor Takeaways
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High P/E multiples signal overvaluation but can be justified by strong growth prospects.
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Market leaders like Trent, Dixon, and Max Healthcare sustain premium valuations due to consistent performance.
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Caution is critical — overvalued stocks tend to be volatile and sensitive to earnings disappointments or market sentiment shifts.
Final Word
The best overvalued stocks in India for 2025 present a double-edged sword — the potential for outsized returns, matched by elevated risk. For investors with a long-term horizon, strong risk management, and disciplined entry/exit strategies, they could be rewarding additions to a diversified portfolio.
