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  3. /IT - Software
  4. /Birlasoft Ltd
MomentumDeep Value

Birlasoft Ltd: Is It a Deep Value Opportunity?

AverageSteady Growth

As of May 17, 2026, Birlasoft Ltd (IT - Software) has a deep value score of 56/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -25%.

Birlasoft Ltd Key Facts

PE Ratio
16.1x
Market Cap
₹8,788 Cr
Value Score
56/100
Margin of Safety
-62%
PAT Growth YoY
+44%
Revenue Growth YoY
+2%
OPM
18.0%
PE: Mid ContractionEmerging Opportunity

What's Happening

⏳Steady earner with flat PE — waiting for re-rate catalyst
🏛️DII reducing — stake down 2.3%
💰Trading 62% above estimated fair value — significant premium

Key Numbers

PAT Growth YoY
+44%
Inflection Up
Revenue YoY
+2%
Inflection Up
Operating Margin
18.0%
+500 bps YoY
PE Ratio
16.1
PEG Ratio
1.69
Current Price
₹314
Dividend Yield
2.07%
3Y PAT CAGR
+16%
Market Cap
8.8K Cr
Valuation
Significantly Overvalued

How Fast Is Birlasoft Ltd Growing?

Revenue, profit and margin growth rates

MetricYoY3Y CAGRTrend
Revenue+2%+3%Inflection Up
PAT (Net Profit)+44%+16%Inflection Up
OPM18.0%+500 bpsVolatile

Other Deep Value Stocks in IT - Software

Mastek Ltd
Strong
61
Sahana Systems Ltd
Strong • Accelerating
60
Infosys Ltd
Average • Accelerating
57
Sonata Software Ltd
Average • Accelerating
55
Coforge Ltd
Average • Accelerating
53
LTM Ltd
Average • Accelerating
53
Aurionpro Solutions Ltd
Average • Accelerating
49
String Metaverse Ltd
Average
46
← Back to IT - SoftwareAll Deep Value SectorsDashboard

Frequently Asked Questions: Birlasoft Ltd

Based on publicly available financial data. This is educational research, not investment advice.

What is Birlasoft Ltd's deep value score?

Birlasoft Ltd has a deep value score of 56/100 (rated Average). This score is calculated from three components

  • Earnings Score: 30/40 — measures PAT growth momentum across quarters
  • Underperformance Score: 14/35 — how much the stock trails Nifty 500 (deeper underperformance = higher contrarian signal)
  • Quality Score: 0/25 — operational quality (margins, revenue growth, valuation)

Is Birlasoft Ltd fundamentally improving?

Birlasoft Ltd's quarterly profit (PAT) growth trajectory

  • Latest Quarter PAT Growth (QoQ): +47%
  • Previous Quarter PAT Growth (QoQ): +3%
  • 2 Quarters Ago PAT Growth (QoQ): +9%
  • PAT Acceleration: +18.8pp (profits are accelerating)
  • 3 consecutive quarters of positive PAT growth

Why is Birlasoft Ltd underperforming despite good earnings?

Birlasoft Ltd is underperforming the market despite improving earnings — this is the core deep value thesis

  • 1-Year Return vs Nifty 500: -25%
  • 6-Month Return vs Nifty 500: -14%
  • 3-Month Return vs Nifty 500: -18%
  • Yet average quarterly PAT growth is +20% — earnings are improving
  • The market often takes time to re-rate stocks with improving fundamentals. This gap between price performance and earnings improvement is what deep value research seeks to identify.

What is the earnings momentum for Birlasoft Ltd?

Birlasoft Ltd's earnings momentum is Steady — consistent growth.

  • PAT QoQ progression: +9% → +3% → +47% (2Q ago → 1Q ago → latest)
  • Acceleration: +18.8pp
  • PAT YoY Growth: +44%

Is Birlasoft Ltd undervalued?

Birlasoft Ltd's valuation metrics

  • Price-to-Earnings (PE): 17.0x
  • Price-to-Book (PB): 2.1x
  • PEG Ratio: 1.7x
  • Margin of Safety: -62% (appears overvalued)

What are the revenue and margin trends for Birlasoft Ltd?

Birlasoft Ltd's revenue and margin trends

  • Latest Quarter Revenue Growth (QoQ): +0%
  • Average Quarterly Revenue Growth: +2%
  • Revenue Acceleration: -1.7pp
  • Latest OPM Change: +0.3pp (margins expanding)
  • Average OPM Change: +2.0pp
  • Revenue YoY: +2%

What is Birlasoft Ltd's trailing twelve month (TTM) performance?

Birlasoft Ltd's trailing twelve month (TTM) performance

  • TTM PAT: ₹518 Cr
  • TTM PAT Growth: +0.2% YoY
  • TTM Revenue: ₹5,000 Cr
  • TTM Revenue Growth: -1.2% YoY
  • TTM Operating Margin: 16.1%

What sector does Birlasoft Ltd belong to?

Birlasoft Ltd key facts

  • Sector: IT - Software
  • Market Cap: ₹8.8K Cr
  • Rank in IT - Software: #5 by value score
  • Overall rank among all deep value stocks: #69

Is Birlasoft Ltd a good deep value opportunity to study?

Birlasoft Ltd shows limited deep value signals currently — score is 56/100 (Average). Monitor for improvement.

  • Value Score: 56/100 (Average)
  • Earnings: Accelerating
  • 1Y Underperformance: -25% vs Nifty 500

What is the bull and bear case for Birlasoft Ltd?

Research Signals (Bull Case)

  • Earnings accelerating — profit growth speeding up
  • 3 consecutive quarters of positive PAT growth
  • Operating margins expanding

Risk Factors (Bear Case)

  • Appears overvalued despite underperformance

Which other IT - Software stocks are deep value opportunities?

Other deep value stocks in IT - Software

  • Mastek Ltd — Score 61/100, Strong
  • Sahana Systems Ltd — Score 60/100, Strong, earnings accelerating
  • Infosys Ltd — Score 57/100, Average, earnings accelerating
  • Sonata Software Ltd — Score 55/100, Average, earnings accelerating
  • Coforge Ltd — Score 53/100, Average, earnings accelerating
  • LTM Ltd — Score 53/100, Average, earnings accelerating

How does the IT - Software sector look for deep value?

IT - Software deep value sector overview

  • 11 deep value stocks in this sector
  • Average value score: 51/100
  • Avg PAT acceleration: +18.9pp
  • Top pick: Sahana Systems Ltd

What is deep value investing?

Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.

How is the deep value score calculated?

The deep value score (0-100) combines three factors:

- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)

Higher score indicates a stronger contrarian research signal.

The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.