Is BLS E-Services overvalued or undervalued?

As of 8 August 2025, BLS E-Services has moved from an expensive to a fair valuation grade. The company is currently fairly valued, with a PE ratio of 29.85, an EV to EBITDA ratio of 21.90, and a PEG ratio of 0.44. In comparison to its peers, TCS has a more attractive PE ratio of 22.28, while Infosys maintains a fair valuation with a PE of 21.71.
BLS E-Services shows a ROCE of 18.80% and an ROE of 10.89%, indicating decent profitability metrics. Although the stock has underperformed the Sensex over the past year, with a return of -14.77% compared to the Sensex's 1.23%, the current valuation suggests that it is not overvalued and may present a reasonable investment opportunity within its sector.