Is BLS E-Services overvalued or undervalued?

Aug 15 2025 08:08 AM IST
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As of August 14, 2025, BLS E-Services is fairly valued with a PE ratio of 29.43 and an EV to EBITDA of 21.55, but has underperformed the Sensex with a year-to-date return of -12.7%, raising concerns about its growth prospects despite its attractive financial ratios compared to peers like TCS and Infosys.
As of 14 August 2025, the valuation grade for BLS E-Services has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 29.43, an EV to EBITDA ratio of 21.55, and a PEG ratio of 0.44. In comparison to its peers, TCS has a more attractive PE ratio of 22.19 and an EV to EBITDA of 15.63, while Infosys also maintains a fair valuation with a PE of 22.05 and an EV to EBITDA of 14.46.

Despite the fair valuation, BLS E-Services has underperformed the Sensex, with a year-to-date return of -12.7% compared to the Sensex's 3.15%. This performance indicates potential concerns in the market regarding the company's growth prospects, even as its current valuation appears justified based on key financial ratios.
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