Is Ashika Credit overvalued or undervalued?

As of 12 September 2025, the valuation grade for Ashika Credit has moved from risky to very expensive. The company is currently overvalued, with a PE ratio of -97.11, an EV to EBITDA ratio of -109.08, and a Price to Book Value of 3.71. These ratios indicate significant financial distress and an inflated valuation compared to its peers.
In comparison, Bajaj Finance, another player in the Non-Banking Financial Company (NBFC) sector, has a PE ratio of 35.82 and an EV to EBITDA of 19.41, while Life Insurance shows a more attractive valuation with an EV to EBITDA of 8.82. Ashika Credit's performance has also lagged behind the Sensex, particularly in the year-to-date return, where it has declined by 56.31% compared to the Sensex's gain of 4.82%. This further reinforces the conclusion that Ashika Credit is overvalued in the current market environment.