Is Xchanging Sol. overvalued or undervalued?

As of 11 August 2025, the valuation grade for Xchanging Solutions has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, especially when compared to its peers. Key ratios include a PE Ratio of 18.07, an EV to EBITDA of 12.55, and a PEG Ratio of 0.31, which suggests strong growth potential relative to its price.
In comparison to its peers, Xchanging Solutions stands out with a significantly lower PE Ratio than Firstsource Solutions at 41.47 and eClerx Services at 34.96, both of which are deemed very expensive. The company's robust ROCE of 36.76% further emphasizes its operational efficiency. Despite recent stock performance lagging behind the Sensex, particularly with a YTD return of -23.49% versus the Sensex's 3.15%, the attractive valuation suggests that it may present a compelling investment opportunity moving forward.