Is Richa Info overvalued or undervalued?

As of 26 August 2025, Richa Info's valuation grade has moved from very expensive to fair. The company is currently fairly valued, with a PE ratio of 12.21, an EV to EBITDA ratio of 8.85, and a PEG ratio of 0.17. These figures indicate a more reasonable valuation compared to its peers, such as TCS with a PE ratio of 23.18 and Infosys at 23.31, both of which are considered attractive.
Richa Info's strong performance metrics, including a ROCE of 41.05% and an ROE of 44.23%, further support its fair valuation status. Despite the recent stock performance showing a decline of 41.53% over the past year compared to a slight drop in the Sensex, the current valuation suggests that the stock may have stabilized at a fair level relative to its earnings potential and industry peers.