Is Ashika Credit overvalued or undervalued?

As of 3 September 2025, the valuation grade for Ashika Credit has moved from very expensive to risky. This indicates a significant shift in perception regarding the company's financial health and market position. Based on the analysis, Ashika Credit is currently overvalued. Key ratios highlight this concern, with a PE ratio of -102.16, an EV to EBITDA ratio of -116.67, and a Price to Book Value of 3.91, which suggest that the company's valuation does not align with its earnings and asset base.
In comparison to its peers, Ashika Credit's valuation metrics are starkly unfavorable. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 32.03 and an EV to EBITDA of 18.09, while Life Insurance, rated very attractive, shows a PE ratio of 11.31 and an EV to EBITDA of 8.77. These comparisons underscore Ashika Credit's overvaluation relative to industry standards. Additionally, while the company has shown remarkable returns over a longer horizon, such as a 950.75% return over three years, its recent performance has been disappointing, with a year-to-date decline of 53.91% compared to a 3.11% gain in the Sensex.