Is Ashika Credit overvalued or undervalued?

As of 29 August 2025, the valuation grade for Ashika Credit has moved from risky to very expensive. This indicates a significant shift in the company's perceived value, suggesting that it is currently overvalued. Key ratios highlight this concern, with a PE ratio of -97.88, an EV to EBITDA of -110.25, and an EV to Capital Employed of 41.50, all of which reflect a troubling financial position.
In comparison to its peers, Ashika Credit 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 an EV to EBITDA of 8.57. These comparisons further underscore Ashika Credit's overvaluation. Additionally, the company's recent stock performance shows a year-to-date decline of 55.96%, contrasting sharply with the Sensex's positive return of 2.14%, reinforcing the notion that Ashika Credit is not a favorable investment at its current price of 366.00.