Is Blue Chip India overvalued or undervalued?

As of 29 August 2025, the valuation grade for Blue Chip India has moved from risky to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, with a PE ratio of -25.11, an EV to EBIT of -25.08, and a PEG ratio of 0.00, all of which suggest that the stock is trading at a substantial discount relative to its earnings potential.
In comparison to its peers, Blue Chip India stands out with its very attractive valuation despite the negative ratios. For instance, Bajaj Finance is classified as very expensive with a PE ratio of 31.3, while Life Insurance is also very attractive with a PE of 11.08. This stark contrast reinforces the notion that Blue Chip India is undervalued within its industry. Notably, while the stock has underperformed in the short term with a year-to-date return of -48.93%, its long-term performance has been impressive, with a 5-year return of 1235.29%, indicating potential for recovery and growth.