Is Ashika Credit overvalued or undervalued?

As of 29 August 2025, the valuation grade for Ashika Credit has moved from risky to very expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE ratio of -97.88, an EV to EBITDA of -110.25, and a Price to Book Value of 3.74, which are significantly out of line with industry standards.
In comparison to its peers, Ashika Credit's valuation stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 31.3 and an EV to EBITDA of 17.84, while Life Insurance boasts a much lower EV to EBITDA of 8.57. The substantial discrepancy in these ratios indicates that Ashika Credit is trading at a premium that is not justified by its financial performance. Despite a strong historical return over the past five years, the recent stock performance has lagged behind the Sensex, further supporting the conclusion that Ashika Credit is currently overvalued.