Is Richa Info overvalued or undervalued?

As of 29 August 2025, Richa Info's valuation grade has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently deemed overvalued based on its financial metrics, with a PE ratio of 11.69, an EV to EBITDA ratio of 8.51, and a PEG ratio of 0.16. These ratios suggest that despite a relatively low PE ratio, the overall valuation remains excessive when compared to industry peers.
In comparison, TCS and Infosys, which are considered attractive and fairly valued respectively, have PE ratios of 22.65 and 22.39, significantly higher than Richa Info's. This stark contrast highlights Richa Info's overvaluation in the current market context. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -21.72% compared to the Sensex's 3.31%, further reinforcing the notion that Richa Info is overvalued in the current landscape.