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 shift in its market perception. The company is currently considered overvalued. Key ratios include a PE ratio of 11.69, an EV to EBITDA of 8.51, and a PEG ratio of 0.16, which, while seemingly attractive, are overshadowed by the high valuation grade.
In comparison to its peers, Richa Info's PE ratio is considerably lower than TCS at 22.65 and Infosys at 22.39, both of which are rated more favorably. Additionally, Richa Info's EV to EBITDA is also lower than the industry averages, suggesting that despite some strong operational metrics like a ROCE of 41.05% and ROE of 44.23%, the overall valuation remains unjustified. The company's stock has underperformed significantly against the Sensex, with a year-to-date return of -21.72% compared to the Sensex's 3.31%, reinforcing the notion of overvaluation.