Is Softsol India overvalued or undervalued?

As of 19 August 2025, the valuation grade for Softsol India moved from attractive to very attractive, indicating a positive shift in its market perception. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE Ratio of 19.48, an EV to EBITDA of 17.22, and a ROCE of 34.48%.
In comparison to peers, Softsol India has a lower PE Ratio than TCS at 22.15 and Infosys at 21.94, while also maintaining a competitive EV to EBITDA ratio compared to TCS's 15.59 and HCL Technologies' 14.7. Despite a recent decline in stock price, Softsol India has shown strong performance over the long term, with a remarkable 501.11% return over the past five years, significantly outperforming the Sensex's 111.43% return in the same period.