Is Birlasoft Ltd overvalued or undervalued?

As of 11 September 2025, Birlasoft Ltd's valuation grade has moved from fair to attractive, indicating a more favorable assessment of its market position. The company is currently considered undervalued, especially in light of its strong performance metrics. Key ratios include a PE ratio of 22.10, an EV to EBITDA of 13.16, and a ROCE of 35.42%, which highlight its operational efficiency and profitability.
In comparison to peers, Birlasoft's PE ratio is slightly lower than TCS at 22.94 and HCL Technologies at 23.46, suggesting it may offer better value relative to these established players. Additionally, its PEG ratio stands at 0.00, indicating potential growth opportunities that are not yet reflected in its stock price. Despite recent underperformance against the Sensex, with a year-to-date return of -32.96% compared to the Sensex's 4.36%, the valuation metrics suggest that Birlasoft Ltd presents an attractive investment opportunity moving forward.