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%.
When compared to peers, TCS has a PE ratio of 21.53 and is rated attractive, while Infosys maintains a fair valuation with a PE of 21.82. Birlasoft's negative EV to EBIT and EV to EBITDA ratios, at -14.81 and -13.05 respectively, highlight notable outliers in its financial performance. Additionally, the company's stock has underperformed relative to the Sensex over the past year, with a return of -34.13% compared to the Sensex's 4.62%.