Is Banas Finance overvalued or undervalued?

As of 19 September 2025, the valuation grade for Banas Finance has moved from very expensive to risky. The company is currently assessed as undervalued. Key ratios include a PE ratio of -17.50, an EV to EBIT of -3.48, and a Price to Book Value of 0.45, indicating significant financial distress and low market valuation relative to its book value.
In comparison with peers, Banas Finance's PE ratio is notably lower than Bajaj Finance's 35.51 and Life Insurance's 11.64, which are both in a much stronger valuation position. The EV to EBITDA ratio of -3.48 also highlights the company's challenges compared to Bajaj Finserv's 12.97. While Banas Finance has struggled with returns, particularly a YTD decline of -8.76% against the Sensex's 5.74%, its current valuation suggests potential for recovery if operational improvements are realized.