Is Amrapali Capital overvalued or undervalued?

As of 28 August 2025, the valuation grade for Amrapali Capital has moved from fair to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued based on its current metrics, particularly with a PE Ratio of 17.04, an EV to EBITDA of -4.90, and a ROE of only 1.39%. These figures suggest that the company's earnings and asset utilization are not performing well compared to its market price.
In comparison to its peers, Amrapali Capital's valuation stands out unfavorably. For instance, Life Insurance, which is rated very attractive, has a PE Ratio of 11.27 and an EV to EBITDA of 8.74, while Bajaj Finance is considered very expensive with a PE Ratio of 31.28. The stark contrast in these ratios highlights that Amrapali Capital is not only underperforming but also priced higher relative to its financial performance. Furthermore, despite a year-to-date return of 10.17%, which outperformed the Sensex's 2.48%, the overall valuation metrics suggest that investors may be overestimating the company's growth potential.