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 assessed as undervalued, with a PE ratio of 15.74, an EV to EBITDA ratio of 14.20, and a ROCE of 8.59%. In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE ratio of 38.09, while Life Insurance stands out as very attractive with a PE of 11.44.
Despite the recent downgrade in valuation grade, Alankit appears to be trading at a favorable level relative to its peers, particularly given its lower EV to Sales ratio of 0.86 compared to the higher valuations of competitors. The stock has underperformed against the Sensex, with a year-to-date return of -46.02% versus the Sensex's 6.50%, which further supports the argument for its undervaluation.