Is BAMPSL Sec. overvalued or undervalued?

As of 18 November 2025, BAMPSL Sec. has moved from a fair to an expensive valuation grade. The company is currently overvalued, with a PE ratio of 34.86, an EV to EBIT ratio of 28.82, and a Price to Book Value of 2.01. Compared to its peers, BAMPSL Sec. has a higher PE ratio than Bajaj Finance at 34.46 and Bajaj Finserv at 33.9, both of which are also considered expensive.
In the context of its performance, BAMPSL Sec. has shown remarkable returns, with a year-to-date return of 80.63% compared to the Sensex's 8.36%. This significant outperformance may suggest strong market sentiment; however, the high valuation metrics indicate that the stock may not be a sustainable investment at its current price levels.