Is Birlasoft Ltd overvalued or undervalued?

As of 29 September 2025, the valuation grade for Birlasoft Ltd has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, especially in light of its strong financial metrics. Key ratios include a PE ratio of 20.61, an EV to EBITDA of 12.10, 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 21.27 and Infosys at 21.95, suggesting it may be undervalued relative to these industry leaders. Additionally, its PEG ratio is notably low at 0.00, indicating potential for growth at a reasonable price compared to its earnings. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date decline of 37.54% against a 2.85% increase in the index, the overall valuation metrics suggest that Birlasoft Ltd presents an attractive investment opportunity at its current price of 350.00.