Is Amarnath Sec. overvalued or undervalued?

As of 24 October 2025, the valuation grade for Amarnath Sec. has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently considered undervalued. Key ratios include a PE ratio of 22.19, an EV to EBIT of 4.91, and a Price to Book Value of 0.94, which suggest that the stock is trading at a discount relative to its earnings and book value.
In comparison to its peers, Amarnath Sec. stands out with a much lower EV to EBITDA ratio than Bajaj Finance, which is at 20.49, and Life Insurance at 8.99, both of which are classified as very expensive. The PEG ratio of 0.00 further emphasizes the undervaluation, especially when compared to peers like Bajaj Finserv, which has a PEG of 2.57. Despite recent underperformance against the Sensex, with a YTD return of -36.25% compared to the Sensex's 7.77%, the fundamental metrics suggest that Amarnath Sec. presents a compelling investment opportunity at its current price of 14.05.