Is Arihant Capital overvalued or undervalued?

As of 27 June 2025, the valuation grade for Arihant Capital has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly in light of its strong financial ratios, including a PE Ratio of 15.49, an EV to EBITDA of 6.04, and an impressive ROCE of 119.12%.
When compared to peers, Arihant Capital's valuation metrics stand out; for instance, Life Insurance has a PE Ratio of 12.53 and an EV to EBITDA of 9.88, while Bajaj Finance is considered very expensive with a PE Ratio of 35.35. Despite a recent decline in stock price, Arihant Capital has outperformed the Sensex over the past year, with a return of 22.02% compared to the Sensex's 6.08%. This combination of strong ratios and favorable peer comparison reinforces the conclusion that Arihant Capital is undervalued in the current market.