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 ROE of 1.25%.
In comparison to its peers, TCS has a PE Ratio of 21.53 and is rated attractive, while Infosys is fairly valued with a PE Ratio of 21.82. Notably, Birlasoft's EV to EBITDA stands at -13.05, which is concerning compared to its peers. Despite recent stock performance showing a 1.80% gain over the past week against a -0.86% decline in the Sensex, the overall year-to-date return of -32.48% suggests that the stock may not be capturing investor confidence, reinforcing the fair valuation conclusion.