Is Amrapali Fincap overvalued or undervalued?

As of 12 September 2025, the valuation grade for Amrapali Fincap has moved from risky to expensive. This indicates a shift in perception regarding the company's valuation, suggesting that it may be overvalued at its current price of 12.72. The company is assessed as overvalued, particularly given its PE ratio of 17.10, a negative EV to EBIT of -17.05, and a low ROE of 0.40%.
In comparison to its peers, Amrapali Fincap's valuation metrics stand out. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 35.82, while Life Insurance is rated very attractive with a PE of 11.36. The disparity in these ratios highlights that Amrapali Fincap may not justify its current valuation when compared to more attractive peers in the Non-Banking Financial Company (NBFC) sector. Additionally, the company's recent stock performance has lagged significantly behind the Sensex over longer periods, reinforcing concerns about its valuation.