Is Ashika Credit overvalued or undervalued?

As of 10 October 2025, the valuation grade for Ashika Credit has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a Price to Earnings (PE) ratio of -98.70, an EV to EBITDA ratio of -111.47, and a Price to Book Value of 3.77. These ratios suggest that the market is pricing Ashika Credit at an unsustainable level compared to its earnings and cash flows.
In comparison to its peers, Ashika Credit stands out as overvalued when juxtaposed with Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, with a PE ratio of 11.65. The stark contrast in valuation metrics highlights the premium at which Ashika Credit is trading relative to more reasonably valued companies in the Non-Banking Financial Company (NBFC) sector. Additionally, while Ashika Credit has shown impressive returns over the long term, its recent performance has lagged behind the Sensex, particularly with a year-to-date decline of -55.59% compared to the Sensex's gain of 5.58%.