Is Alankit overvalued or undervalued?

As of 7 November 2025, Alankit's valuation grade has moved from very attractive to attractive, indicating a shift in its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 15.74, an EV to EBITDA of 14.20, and a ROCE of 8.59%.
In comparison to its peers, Alankit's PE ratio is significantly lower than that of Bajaj Finance, which stands at 38.09, and also lower than Bajaj Finserv at 35.3. Meanwhile, Life Insurance, which is rated very attractive, has a PE ratio of 11.44, suggesting that Alankit remains competitively priced within its industry. Despite recent stock performance trailing the Sensex, with a year-to-date decline of 46.02% compared to the Sensex's gain of 6.50%, the underlying valuation metrics suggest that Alankit presents a buying opportunity at its current price of 11.81.