Is Ashika Credit overvalued or undervalued?

As of 23 October 2025, the valuation grade for Ashika Credit has moved from very expensive to risky. This indicates a significant shift in the perception of the company's financial health and market position. Based on the current analysis, Ashika Credit appears to be overvalued. The company has a PE ratio of -95.96, an EV to EBITDA ratio of -107.36, and a Price to Book Value of 3.67, which are concerning indicators of its valuation relative to earnings and asset value.
When compared to its peers, Ashika Credit's valuation metrics stand out negatively. For instance, Bajaj Finance has a PE ratio of 39.07 and EV to EBITDA of 20.55, while Life Insurance boasts a PE of 11.68 and an EV to EBITDA of 9.11, both reflecting a much healthier valuation landscape. Additionally, Ashika Credit's return on equity (ROE) is at -3.82%, further emphasizing its struggles compared to the industry. Despite a strong return over the long term, the recent performance shows a stark contrast, with a year-to-date decline of 56.82% compared to the Sensex's gain of 8.21%, reinforcing the view that the stock is currently overvalued.