Is Arihant Capital overvalued or undervalued?

As of 15 July 2025, Arihant Capital's valuation grade has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued based on its strong financial metrics. Key ratios include a PE ratio of 18.12, an EV to EBIT of 7.46, and an impressive ROCE of 119.12%.
In comparison to its peers, Arihant Capital stands out with a lower PE ratio than Bajaj Finance, which is at 34.67, and a more favorable EV to EBITDA ratio compared to Life Insurance at 9.5. The company's PEG ratio of 0.00 further emphasizes its undervaluation relative to growth potential. Notably, Arihant Capital has outperformed the Sensex over the past year with a stock return of 25.83% compared to the Sensex's 2.36%, reinforcing its attractive valuation narrative.