Is Birlasoft Ltd overvalued or undervalued?

As of 7 November 2025, Birlasoft Ltd's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 22.84, a Price to Book Value of 0.28, and a negative EV to EBIT of -14.81, which reflects challenges in profitability.
In comparison to its peers, TCS has a PE ratio of 21.53 and is rated attractive, while Infosys, rated fair, has a PE of 21.82. This suggests that Birlasoft's valuation is in line with industry standards but lacks the attractiveness of its higher-rated peers. Additionally, while Birlasoft has underperformed the Sensex year-to-date with a return of -32.48% compared to the Sensex's 6.50%, it has shown better performance over longer periods, indicating potential for recovery.