Is Richa Info overvalued or undervalued?

As of 14 July 2025, Richa Info's valuation grade has moved from attractive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its key financial ratios, which include a PE ratio of 15.71, an EV to EBIT of 11.49, and an EV to EBITDA of 11.14. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow generation capabilities.
In comparison to its peers, Richa Info's PE ratio of 15.71 is notably lower than TCS's 23.67 and Infosys's 24.42, which are both considered attractive and fair, respectively. Additionally, Richa Info's PEG ratio of 0.21 indicates strong growth potential relative to its price, but the overall valuation remains concerning when juxtaposed with peers like HCL Technologies and Wipro, which also show attractive valuations. Despite a strong one-year stock return of 30.87% compared to the Sensex's 2.37%, the current valuation suggests that Richa Info may not sustain this momentum in the long run.