Is Richa Info overvalued or undervalued?

Aug 29 2025 08:13 AM IST
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As of August 28, 2025, Richa Info is considered overvalued with a valuation grade of expensive, reflected by a PE ratio of 12.21 and poor stock performance, showing a year-to-date return of -18.22% compared to the Sensex's 3.62%.
As of 28 August 2025, Richa Info's valuation grade has moved from fair to expensive, indicating that the company is currently overvalued. The key ratios reflect this assessment, with a Price-to-Earnings (PE) ratio of 12.21, an EV to EBITDA ratio of 8.85, and a Price to Book Value of 5.40. Compared to its peers, TCS has a significantly higher PE ratio of 22.74, while Infosys stands at 22.86, both suggesting that Richa Info's valuation does not align favorably within its competitive landscape.

In addition to the valuation metrics, Richa Info's recent stock performance has been underwhelming, with a year-to-date return of -18.22% compared to a positive 3.62% for the Sensex, further reinforcing the notion of overvaluation. Overall, Richa Info appears to be overvalued relative to its peers and market performance, warranting caution for potential investors.
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