Is Alacrity Sec. overvalued or undervalued?

As of 6 November 2025, Alacrity Sec. has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 21.70, an EV to EBIT of 19.93, and a ROCE of 16.40%. In comparison to peers, Bajaj Finance is categorized as very expensive with a PE of 37.19, while Life Insurance is noted as very attractive with a PE of 11.62, highlighting Alacrity's relative valuation advantage.
Despite a challenging year with a YTD stock return of -63.31%, Alacrity Sec. has shown strong performance over a three-year period with a return of 386.11%, significantly outpacing the Sensex's 36.69%. This long-term growth potential, combined with its attractive valuation metrics, supports the conclusion that Alacrity Sec. is currently undervalued in the market.