Is Octaware Tech. overvalued or undervalued?

As of 8 August 2025, Octaware Tech. has moved from an attractive to a risky valuation grade. The company appears to be undervalued based on its financial ratios, which include a PE Ratio of 9.14, an EV to EBIT of 8.36, and a Price to Book Value of 0.68. These figures suggest that the market may not fully recognize the company's potential, especially when compared to peers such as TCS, which has a PE Ratio of 22.28, and Infosys with a PE Ratio of 21.71.
Despite its current valuation, Octaware Tech. has experienced significant declines in stock performance, with a year-to-date return of -62.4%, contrasting sharply with the Sensex's positive return of 2.20%. This disparity further supports the notion that the stock may be undervalued relative to its intrinsic worth and potential for recovery in the market.