Is Ashika Credit overvalued or undervalued?

As of 29 August 2025, the valuation grade for Ashika Credit has moved from risky to very expensive, indicating a significant shift in its market perception. The company is currently assessed as overvalued. Key ratios highlight this situation, with a PE Ratio of -97.88, an EV to EBITDA of -110.25, and an EV to Capital Employed of 41.50, all suggesting that the company is trading at unsustainable levels compared to its earnings and asset base.
In comparison to its peers, Ashika Credit's valuation metrics stand 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 more attractive EV to EBITDA of 8.57. Additionally, Ashika Credit's ROE is at -3.82%, contrasting sharply with the industry standards. Despite a strong 3-year stock return of 889.19%, recent performance has lagged behind the Sensex, with a YTD decline of 55.96% compared to the Sensex's gain of 2.14%.