Is Richa Info overvalued or undervalued?

As of 1 September 2025, Richa Info's valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 11.18, an EV to EBIT of 8.44, and a PEG ratio of 0.15, which suggest that while the company is generating strong returns (ROE of 44.23% and ROCE of 41.05%), its valuation metrics remain high relative to its earnings growth potential.
In comparison to its peers, Richa Info's PE ratio is significantly lower than that of TCS and Infosys, which stand at 22.86, indicating that it is trading at a discount relative to these industry leaders. However, its EV to EBITDA ratio of 8.18 is still higher than Wipro's 12.74, suggesting that Richa Info may not be as attractive as its competitors. Additionally, the company's stock has underperformed the Sensex over various periods, with a year-to-date decline of 25.15% compared to the Sensex's gain of 4.15%, reinforcing the notion that the stock may be overvalued at its current price of 56.70.