Is Amrapali Fincap overvalued or undervalued?

As of 10 October 2025, the valuation grade for Amrapali Fincap has moved from risky to expensive, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios reflect this status: the PE Ratio stands at 17.10, the Price to Book Value is notably low at 0.11, and the ROE is only 0.40%, suggesting limited profitability relative to equity.
In comparison to peers, Amrapali Fincap's valuation metrics appear unfavorable. For instance, Bajaj Finance has a PE Ratio of 36.56, while Life Insurance boasts a much lower PE of 11.65, highlighting a significant disparity in valuation. Additionally, the EV to EBITDA ratio for Amrapali is -17.05, which is concerning when compared to the industry standards. Recent stock performance has lagged significantly behind the Sensex, particularly over a three-year period, where the company achieved a return of only 4.95% compared to the Sensex's 42.26%.