Is Amarnath Sec. overvalued or undervalued?

As of 24 October 2025, Amarnath Sec. has moved from an attractive to a very attractive valuation grade. The company is currently considered undervalued based on its financial metrics. 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 suggests that the stock is trading below its intrinsic value relative to its earnings and assets.
In comparison to its peers, Amarnath Sec. stands out with a significantly lower PE ratio than Bajaj Finance, which has a PE of 38.9, and a more favorable EV to EBITDA ratio compared to Bajaj Finserv at 13.25. Additionally, the PEG ratio of 0.00 indicates that the stock is potentially undervalued relative to its growth prospects. While the company's recent stock performance has lagged behind the Sensex, particularly with a YTD return of -36.25% compared to the Sensex's 7.77%, the current valuation metrics suggest that there is substantial upside potential for investors.