Is Alankit overvalued or undervalued?

As of 27 October 2025, Alankit's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 16.70, an EV to EBITDA ratio of 15.18, and a Price to Book Value of 1.15. These ratios suggest that Alankit is trading at a reasonable valuation compared to its earnings and book value.
In comparison to its peers, Alankit shows a more favorable valuation than Bajaj Finance, which is deemed very expensive with a PE ratio of 38.72, and Bajaj Finserv, also expensive at a PE of 36.44. On the other hand, Life Insurance stands out as very attractive with a PE ratio of 11.65, indicating that while Alankit is undervalued, it still has competition in the market. Notably, Alankit has underperformed against the Sensex over the past year, with a return of -43.05% compared to the Sensex's 6.77%, which may further support its undervalued status in the current market environment.