Is Octaware Tech. overvalued or undervalued?

As of 3 July 2025, the valuation grade for Octaware Tech. has moved from does not qualify to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly when compared to its peers. Key ratios include a PE ratio of 9.14, an EV to EBIT of 8.36, and a PEG ratio of 0.08, all of which suggest that the stock is trading at a discount relative to its earnings growth potential.
In comparison to peers, Octaware's PE ratio is substantially lower than TCS at 25.34 and Infosys at 25.16, both of which are categorized as attractive and fair, respectively. Additionally, HCL Technologies has a PE ratio of 26.69, reinforcing the notion that Octaware Tech. is undervalued within its industry. Despite a challenging performance relative to the Sensex, with a year-to-date return of -62.4% compared to the Sensex's 6.53%, the company's current valuation metrics suggest a compelling opportunity for investors.