Is Ashika Credit overvalued or undervalued?

As of 10 October 2025, Ashika Credit's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, with a PE ratio of -98.70 and an EV to EBITDA ratio of -111.47, both of which are alarming indicators of financial health. Additionally, the Price to Book Value stands at 3.77, suggesting that the market is pricing the company at a premium compared to its book value.
In comparison to its peers, Ashika Credit's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, with a more favorable EV to EBITDA ratio of 9.08. This disparity underscores the overvaluation of Ashika Credit in the current market. Despite a recent stock return of 5.52% over the past week, which outperformed the Sensex's 1.59%, the long-term performance shows a decline of 55.59% year-to-date, further reinforcing the notion that Ashika Credit is not a sound investment at its current price of 369.05.