Is Richa Info overvalued or undervalued?

As of 5 September 2025, Richa Info's valuation grade has moved from expensive to very attractive, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE Ratio of 10.25, an EV to EBITDA of 7.50, and a PEG Ratio of 0.14, all of which suggest that the stock is trading at a discount compared to its earnings growth potential.
In comparison to its peers, Richa Info's valuation metrics are notably lower; for instance, TCS has a PE Ratio of 22.38 and EV to EBITDA of 15.77, while Infosys shows a PE of 22.02 and EV to EBITDA of 14.44. This stark contrast highlights Richa Info's undervaluation in the market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a YTD return of -31.35% compared to the Sensex's 4.64%, reinforcing the notion that the stock may be undervalued relative to its potential.