Is Alankit overvalued or undervalued?

As of 3 July 2025, Alankit's valuation grade has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 19.05, an EV to EBITDA ratio of 12.04, and a ROE of 7.62%. In comparison to its peers, Life Insurance has a PE ratio of 12.38 and an EV to EBITDA of 9.74, while Bajaj Finance is considered very expensive with a PE ratio of 34.02 and an EV to EBITDA of 19.17.
Despite the recent price increase, Alankit has underperformed the Sensex over the year, with a stock return of -31.99% compared to the Sensex's 4.07%. This underperformance, combined with its current valuation metrics, suggests that while Alankit is fairly valued, it may not present an attractive investment opportunity compared to its peers.