Is Banas Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for Banas Finance has moved from risky to expensive, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE Ratio of -15.53, an EV to EBIT of -3.04, and a Price to Book Value of 0.40, suggesting significant underlying issues impacting profitability and valuation.
In comparison to its peers, Banas Finance's valuation metrics are notably less favorable. For instance, Bajaj Finance, categorized as very expensive, has a PE Ratio of 38.21, while Life Insurance, deemed very attractive, has a PE Ratio of 11.49. This stark contrast underscores Banas Finance's relative overvaluation. Additionally, the company has underperformed against the Sensex, with a year-to-date return of -19.02% compared to the Sensex's positive return of 7.44%, further reinforcing the notion that Banas Finance is currently overvalued.