Is Richa Info overvalued or undervalued?

As of 26 August 2025, Richa Info's valuation grade has moved from very expensive to fair, indicating a significant adjustment in its market perception. 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, suggesting strong growth potential relative to its price.
In comparison to its peers, Richa Info's valuation metrics are notably lower; for instance, TCS has a PE ratio of 23.18 and an EV to EBITDA of 16.34, while Infosys shows a PE of 23.31 and an EV to EBITDA of 15.32. This stark contrast highlights Richa Info's relative undervaluation within the industry. Additionally, the company has demonstrated impressive returns on capital, with a ROCE of 41.05% and an ROE of 44.23%. Despite recent poor stock performance, including a 41.53% decline over the past year compared to a slight drop in the Sensex, the valuation metrics suggest that Richa Info may present a buying opportunity for investors looking for growth at a reasonable price.