Is Arihant Capital overvalued or undervalued?

As of 17 September 2025, the valuation grade for Arihant Capital has moved from fair to attractive, indicating a positive shift in its valuation outlook. The company is currently assessed as undervalued. Key ratios include a PE ratio of 22.93, an EV to EBITDA of 10.07, and an impressive ROCE of 119.12%.
In comparison to its peers, Arihant Capital's PE ratio is significantly lower than that of Bajaj Finance, which stands at 35.94, and also lower than Bajaj Finserv at 34.55, both of which are categorized as expensive. Additionally, the PEG ratio for Arihant is 0.00, suggesting strong growth potential relative to its price. Notably, while Arihant Capital's stock has underperformed the Sensex over the past week and year, it has outperformed in the longer term, particularly over the last five years with a return of 995.92% compared to the Sensex's 112.14%.