Best Overvalued Stocks in India for 2025 to Invest In

Are you looking for the best overvalued stocks in India? It should be a good opportunity for investors, but identifying the best overvalued stocks in India may be amazing. These overvalued stocks are high-risk and high-reward, making them attractive for belligerent investors. The best overvalued stocks in India have shown a higher profit and offer a higher return with a proportionally small capital investment. In spite of essential capital loss risk and the best overvalued stocks in India in 2025, they deliver higher long-term returns if chosen wisely. 

While exploring these stocks, it’s also important to consider whether some of them fall into the category of overvalued stocks. Most of the company stocks are also considered among the most overvalued stocks due to high price appreciation without complementary earnings. Therefore, investors must be aware when evaluating the best overvalued stocks to buy, especially in the overvalued stocks, as the hype could inflate valuations beyond realistic growth expectations.

If you are struggling with the choice of the most overvalued stocks to buy in India, If yes, we have a list of some of the best overvalued stocks to buy in 2025 that offer strong high potential. We all help you to identify the best overvalued stock category and offer the key strategy to make better decisions regarding the investment. 

What are Overvalued Stocks?

Overvalued stocks are the stocks that are currently traded at a higher price than their real value based on the company’s fundamental factors like revenue, assets, earnings, and growth potential. The best overvalued stocks in India are expected to get higher returns in the long term.

For example, if the price of the stock is ₹1,000, but it’s being sold for ₹2,000 just because everyone is hyping it up, it is an overvalued stock.

Overvalued Stocks By Market Capitalisation

Here are the best overvalued stocks to buy now in 2025, along with their updated prices and market capitalisations for your reference. 

Disclaimer: Please be aware that investing in overvalued stocks to buy in 2025 comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the best overvalued stocks in India to make an informed investment decision on the most overvalued stocks. 

Best Overvalued Stocks to Buy: Company Overview

The best overvalued stocks in India include Trent, Max Healthcare Institute, Dixon Technologies, Jio Financial, Adani Green Energy, and more. Investing in these stocks might offer the potential to generate higher returns over the period. 

1. Trent Ltd.

Founded: 1952

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹1,90,515.00 cr

Trent Ltd. is a part of the TATA Group, and it deals with the Indian retail company. It operates in various retail industries like Westside, Zudio, and Star Market. It offers a wide range of products like footwear, accessories, fashion, and grocery items. Trent has achieved revenue growth of 5.2 times and 10.3 times profit after tax in FY 2025. Experts are saying that this one of the best overvalued stocks in India could provide a high return in the upcoming year. 

2. Max Healthcare Institute Ltd.

Founded: 2001

Headquarters: New Delhi, Delhi

Market Capitalisation: ₹1,23,622.00 cr

Max Healthcare Institute Ltd. is an Indian healthcare provider with a network of 22 hospitals, including super-speciality facilities. The hospitals are in Delhi NCR, Haryana, Punjab, Uttar Pradesh, and Uttarakhand. It has shown strong growth and revenue. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. They also expand the networks of health care facilities. Max Health Care has a low debt-to-equity ratio and a high range of interest coverage ratio. 

3. Dixon Technologies India Ltd.

Founded: 1993

Headquarters: New Delhi, Delhi

Market Capitalisation: ₹99,901.00 cr

 Dixon Technologies Limited is an Indian manufacturing company that deals in the manufacture of a wide range of products. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. It focuses on manufacturing a wide range of products like consumer durables, lighting, and mobile phones, along with an increase in drone stocks. CNBC TV 18 says that Dixon Technologies is to acquire a 51% stake in Q Tech India via primary and secondary investment. 

4. Jio Financial Ltd.

Founded: 1999

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹2,07,435.00 cr

Jio Financial Ltd. is an Indian financial services company that provides a wide range of digital-first, full-stack financial solutions to businesses and individuals. It offers services like savings accounts, loans, bill payments, investments, and insurance. Jio Financial Services has reported a net profit of ₹325 crore, an increase of 4% year-on-year, with revenue rising 46.6% to ₹612.46 crore. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. 

5. Adani Green Energy Ltd.

Founded: 2015

Headquarters: Ahmedabad, Gujarat

Market Capitalisation: ₹1,55,420.00 cr

Adani Green Energy Ltd. is a leading indian renewable energy This company focuses on developing, owning, and operating. It plays an important role in India’s clean energy transition, aiming to achieve 50 GW of renewable energy capacity by 2030. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. Adani Green Energy is increasing its focus on clean energy and its expansion plan. It aims to achieve 50 GW of renewable energy capacity by 2030. 

6. Infoedge Ltd.

Founded: 1995

Headquarters: Noida, Uttar Pradesh

Market Capitalisation: ₹85,688.00 cr

Infoedge Ltd. is an Indian technology company that operates online classifieds businesses, primarily in recruitment, real estate, and education. It has an outflow and an inflow of cash in the Indian market. Infoedge has strong revenue growth with a 32.97% annual revenue growth, and the 3-year CAGR is 24.3%. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. 

7. Bharti Airtel Ltd.

 Founded: 1995

Headquarters: New Delhi, Delhi

Market Capitalisation: ₹11,57,598.00 cr

Bharti Airtel Ltd. is a global communication solution provider with a significant presence in India as well as Africa. They are providing a wide range of services like mobile telephony, broadband, DTH, enterprise solutions, and digital payments. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. 

Bharti Airtel revenue jumped 28% year over year to ₹49,463 crore.

8. Havells India Ltd.

Founded: 1958 

Headquarters:  Noida, Uttar Pradesh

Market Capitalisation: ₹93,367.00 cr

Havells India Limited, founded in 1958 and headquartered in Noida, is a leading Fast-Moving Electrical Goods (FMEG) company manufacturing a wide array of products—from switchgear, cables, lighting, and home appliances to modular switches—across six brands, including Havells, Lloyd, Crabtree, Standard, and REO. Experts are saying that this one of the best overvalued stocks in India could provide a higher return in the upcoming year. From FY19 to FY25, the company’s net sales nearly doubled (₹10,073 cr to ₹21,778 cr), and PAT rose from ₹788 cr to ₹1,472 cr, all while remaining debt‑free since 2022. Q4 FY25 saw ~20% revenue growth and ~16% net profit growth, driven by strong demand in large appliances and cables.

9. Tata Steel Ltd.

Founded: 1907 

Headquarters:  Mumbai, Maharashtra

Market Capitalisation: ₹1,98,114.00 cr 

Tata Steel Limited is the largest steel producer in India as well as the global steel market. The company has increased its production capacity and the different products in the portfolio. Tata Steel is sometimes considered among the most overvalued stocks due to investors’ high expectations. It is listed as one of the best overvalued stocks in India due to the demand and infrastructure growth. When the price of global steel increases and demand increases, the investor views it as one of the most overvalued stocks to buy.  

10. Avenue Supermarts Ltd.

Founded: 2002 

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹2,75,976.00 cr 

Avenue Supermarts Ltd (DMart) operates over 415 stores all over India as of March 2025. In Q1 FY26, DMart posted a 16% rise in revenue but only a moderate 2% increase in net profit. The company’s online grocery sales surged 21% in FY25 to ₹3,502 crore, although losses widened amid aggressive expansion. Analysts view DMart as among the best overvalued stocks in India, particularly appealing despite being listed among the most overvalued stocks, and some even see it as one of the most overvalued stocks to buy for its resilient growth. 

Learn more about the aforementioned most overvalued stocks to buy now! Explore their detailed fundamentals for ideal returns. 

Characteristics of the Most Overvalued Stocks to Buy 

Explore the characteristics of the most overvalued stocks to buy now below:

1. High P/E Ratio

Overvalued stocks have a P/E ratio much higher than the business average and traditional norms. Investors are paying more for each unit of earnings. Explore the company fundamentals and technicals of the best overvalued stocks in India.

2. High P/B Ratio

Overvalued stocks indicate the market value of the company is much higher than the net asset value of the company. Investors can analyse the best undervalued stocks in India for the upcoming years; they pay higher returns. 

3. Excessive market Hype 

Overvalued stocks are called by the media buzz, investors’ sentiments, or social media, too much hype in place of company fundamentals. The best overvalued stocks in India are due to the appreciation in price or stable business models. The most overvalued stocks increase in popularity not through the company’s performance but through speculation.  

4. Dividend Yield 

Some of the best overvalued stocks in India often declare dividend payouts. Dividends are apart from capital appreciation and can help individuals manage daily expenses, but most overvalued stocks don’t offer dividends because the yield is too low due to the price fluctuation. Explore the overvalued stocks in 2025. 

Conduct deep research on the most overvalued stocks to buy to make a wise selection!

Advantages of Overvalued Stocks in India

Besides capital appreciation, the most overvalued stocks to buy today offer multiple other advantages. Explore them below. 

1. High growth 

Most overvalued stocks belong to the high-growth sectors like AI, EV, or drones. In the future, the sectors will rise significantly as investors explore the best overvalued stocks in India; after that, they invest.

2. High liquidity 

Liquidity in the most overvalued stocks to buy sometimes creates a hurdle for investors to buy additional shares or sell the existing shares. It rises due to low trading volumes in the high-priced stocks. 

3. Institutional Investors

Some of the most overvalued stocks are backed by institutional investors, which adds credibility and stability. The best overvalued stocks in India are those that investors who believe in the backing will continue to support high valuation in the near term.

4. Strong market behaviour

Most overvalued stocks benefit from the high number of investors and bad momentum; accordingly, the price of the best overvalued stocks in India can be high in the short term.  

Most Overvalued Stocks to Buy With P/E Ratio

Here are the most overvalued stocks to buy now with their P/E ratios. 

Best Overvalued Stocks to Buy 

Explore the most overvalued stocks to buy now in 2025 with their 5-year returns.

5-Year CAGR in Most Overvalued Stocks to Buy 

Have a look at the most overvalued stocks to buy now in 2025 with their 5-year compound annual growth rate (CAGR). 

Other best overvalued Stocks to Buy Now in 2025

Explore the most overvalued stocks to buy now for substantial returns in the coming decades.

Factors Affecting the Most Overvalued Stocks to Buy Now

Explore the major factors essential to be considered when investing in the most overvalued stocks to buy now. 

1. Market sentiment

Marketing in the hype driven by social media, news, or trending sectors can push the stock price beyond the actual price. For example, EV, AI, or renewable energy stocks. These trending sectors can push the most overvalued stocks even higher.

2. High Earning

If the company of the project is growing rapidly, investors can buy the best overvalued stocks in India. It turned into one of the most overvalued stocks in spite of modest current earnings.

3. High liquidity

Explore the best overvalued stocks in India; when the purchase costs are low, investors can put money into equities, boost the valuation, and create the best overvalued stocks in India from a short-term perspective.

4. Limited share supply

If companies with few shares available can see prices rise quickly, it leads to the most overvalued stocks status in the Indian stock market.

Risks of Overvalued Stocks to Buy Now?

Investors may encounter some common risks in the most overvalued stocks to buy now. An assessment of these risks may help them avoid significant losses in the investment journey. Explore the major risks with their mitigation strategies. 

1. Price Manipulation

The most overvalued stocks to buy now are those that change in market sentiment or earnings disappoint. It leverages price manipulation in the stocks and incurs huge losses for the investors and readjusts with company fundamentals.

2. Risk-Reward Ratio

Exploring the most overvalued stocks means buying these stocks, paying more for each rupee of earnings, reducing the potential return, and increasing the downside risk.

3. Overdependence on Hype

Explore the best overvalue stocks in India that can still The price of stocks is overvalued because they are driven by the media buzz or social media hype. Once the investors’ excitement declines, the price of the best overvalued stocks in India tumbles.

4. Market Condition

Overvalued stocks can react more negatively to interest rate hikes, inflation, or global market uncertainty. Analyse the market condition to select the best overvalued stocks in India.

Who Should Invest in the Best Overvalued Stocks in India?

Here is the list of investors who should invest in the most overvalued stocks to buy in India. Explore them. 

1. Long-term Investors

Those who believe in the long-term potential of the company, brand strength, and market rule may buy the best overvalued stocks in India, expecting the future earnings to justify the high price of the stocks.

2. High Risk tolerance

The most Overvalued stocks to buy often come with high-risk, high-reward play! They are high-priced stocks that are easily accessible with a small capital investment. Those with high-risk tolerance can consider the best overvalued stocks to buy now in India to generate wealth in short-term momentum plays.

3. Market Leaders 

Some of the blue-chip companies trade at a premium valuation for years; investors who believe in the long term can still invest. It is the best overvalued stock in India despite the high P/E ratio.

Find yourself in the above categories and download Univest to invest in the best overvalued stocks to buy! 

How to Invest in the Most Overvalued Stocks Now?

Investing in the most overvalued stocks now is not as complex as it seems. You just need to follow the steps mentioned below. 

• Step 1: Conduct research on the best overvalued stocks to buy now. 
• Step 2: Open a demat account on Univest and place an order for the most overvalued stocks to buy in 2025. 
• Step 3: Get your order executed for the quantity you wish to buy. 
• Step 4: Monitor your portfolio to track the returns and wait for the right time to book a profit. 

Try Univest screeners to get real-time insights on oversold stocks, multibagger stocks, daily breakouts, etc.

Common Mistakes Investors Should Avoid in the Most Overvalued Stocks to Buy Now

Here are some of the common mistakes investors should avoid when exploring the most overvalued stocks to buy now in 2025. 

1. Ignoring valuation Metrics

Explore the best overvalued stocks in India to get the knowledge and overlook of company fundamentals such as P/E ratio, P/B ratio, or EV/EBITDA. The price of overvalued stocks has already reached perfection, so paying a premium without analysis increases risk.

2. Growth Potential 

Investors can assume that the overvalued stocks’ high growth will continue long-term. The reality is that growth rates tend to slow over time, and disappointment can hit the most overvalued stocks hard.

3. Ignoring Market Cycles

Many of the investors are buying the best overvalued stocks in India at the peak of a bull market, which increases the risk of heavy losses when a market correction occurs.

4. Neglect Risk Management

Investors who fail to set stop-loss orders or allocate only a small portion of capital to overvalued stocks can turn the small declines of stocks into significant portfolio damage.

Essential Tips to Invest in the Most Overvalued Stocks to Buy Now in 2025

Here are the essential tips to potentially invest in overvalued stocks in 2025. 

1. Focus on Strong Fundamentals

Investors choose the companies that have consistent revenue growth, high profit margins, and strong balance sheets. These fundamentals can better explain the market correction.

2. Set Entry & Exit Points

Set your entry and exit points before investing in the most overvalued stocks in India. Use technical tools like stop-loss and target trigger to book your ideal returns in the best overvalued stocks in India.

3. Keep Portfolio Diversified

Investors choose the balanced overvalued stock picks over undervalued or the price of fair investments to manage the overall risk.

4. Stay Alert to News & Earnings Reports

Overvalued stocks can react sharply to earnings misses, changes in policy, and industry sector news. Investors should stay updated to act quickly.

Let’s Wrap

The best overvalued stocks in India are the stocks that are currently traded at a higher price than their real value based on the company’s fundamental factors like revenue, assets, earnings, and growth potential. The most overvalued stocks to buy in 2025 include Trent, Max Healthcare Institute, Dixon Technologies India, Jio Financial,

Adani Green Energy, Bharti Airtel, and Havells India. Investors should invest in the best overvalued stocks in India to generate a higher return successfully. Investors can analyse the stocks before investing in them, like technical analysis, industry exposure, and financial health. These factors can give a multibagger return from the overvalued stock in India.

Try Univest, the No. 1 stockbroker or advisory platform, to research the Most overvalued stocks to buy now!

FAQs on Overvalued Stocks to Buy Now

1. Which overvalued stocks are best to buy now?

Ans. Here are some of the most overvalued stocks to buy now in 2025. 

2. What are Overvalued stocks?

Ans. Overvalued stocks are the stocks that are currently traded at a higher price than their real value based on the company’s fundamental factors like revenue, assets, earnings, and growth potential. The best overvalued stocks in India are expected to get higher returns in the long term.

3. How do I tell if a stock is overvalued?

Ans. A stock is overvalued when the market price is higher than the actual price based on the company’s fundamentals. You can compare the ratios like the P/E ratio and the P/B ratio and historical data. In short, if the price runs far ahead of the company’s real performance, it’s probably overvalued.

4. Is it bad to buy overvalued stocks?

Ans. The best overvalued stocks in India can be risky because the price of overvalued stocks is higher than their fundamentals. After that, if the growth is slow, the price falls accordingly.

5. Which is better overvalued or undervalued stocks?

Ans. If the stock is overvalued, it is a good opportunity for the short term by selling its shares, or when the stock is overvalued, it is good for the long term for the investors to buy its shares.

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