Is Ashika Credit overvalued or undervalued?

As of 14 August 2025, the valuation grade for Ashika Credit has moved from risky to very expensive. This indicates a significant shift in perception regarding the company's valuation. The company is currently deemed overvalued, with a PE ratio of -103.04, an EV to EBITDA ratio of -117.99, and a Price to Book Value of 3.94. These ratios suggest that the market is pricing Ashika Credit at an unsustainable level compared to its earnings and asset values.
In comparison to its peers, Ashika Credit stands out negatively; for instance, Bajaj Finance has a PE ratio of 30.73 and an EV to EBITDA of 17.64, while Life Insurance shows a PE ratio of 11.53 and an EV to EBITDA of 8.97, both indicating more attractive valuations. Furthermore, despite a strong historical performance over the long term, with a 5-year return of 2005.46%, the recent year-to-date performance shows a decline of 53.63% against a 3.15% increase in the Sensex, reinforcing the notion that the stock is currently overvalued.