Is Ashika Credit overvalued or undervalued?

As of 28 August 2025, the valuation grade for Ashika Credit has moved from very expensive to risky. Based on the analysis, the company is currently overvalued. Key ratios indicate significant concerns, with a PE ratio of -98.42, an EV to EBITDA of -111.05, and an EV to Sales ratio of 11.67. These figures highlight the company's financial instability and the challenges it faces in generating profits.
In comparison to its peers, Ashika Credit's valuation metrics stand out unfavorably. For instance, Life Insurance has a PE ratio of 11.27 and an EV to EBITDA of 8.74, while Bajaj Finance shows a PE ratio of 31.28 and an EV to EBITDA of 17.83. The stark contrast in these ratios suggests that Ashika Credit is not only underperforming relative to its competitors but also carries a higher risk profile. Additionally, while the stock has shown strong returns over the long term, its year-to-date performance of -55.72% compared to a 2.48% gain in the Sensex reinforces the notion of overvaluation and potential investor caution.