Is Blue Chip India overvalued or undervalued?

As of 4 September 2025, the valuation grade for Blue Chip India has moved from risky to very attractive, indicating a significant positive shift in its perceived value. The company is currently considered undervalued, particularly given its extreme negative ratios, such as a PE ratio of -24.39 and an EV to EBITDA ratio of -24.36. These figures suggest that the market may not be accurately reflecting the company's potential, especially when compared to peers like Bajaj Finance, which is deemed very expensive with a PE ratio of 33.36, and Life Insurance, which is very attractive with a PE ratio of 11.41.
Despite the negative ratios, Blue Chip India's valuation stands out in a sector where competitors are trading at much higher multiples. The company's current price of 4.41 is at the lower end of its 52-week range, which peaked at 9.71, further reinforcing the notion that it may be undervalued. While the stock has not shown returns in the short term, its long-term performance over three to ten years has been notably strong, suggesting that it could be a compelling investment opportunity in the current market context.