Is Arihant Capital overvalued or undervalued?

As of 17 July 2025, the valuation grade for Arihant Capital has moved from attractive to very attractive. The company is currently considered undervalued. Key ratios include a PE ratio of 18.20, an EV to EBITDA of 7.23, and an impressive ROCE of 119.12%.
In comparison to its peers, Arihant Capital's valuation stands out favorably; for instance, Life Insurance has a PE ratio of 12.12, while Bajaj Finance is deemed very expensive with a PE of 34.51. Notably, Arihant's PEG ratio is 0.00, indicating significant growth potential relative to its price. Additionally, the stock has outperformed the Sensex recently, with a 1-month return of 16.57% compared to the Sensex's 0.83%.