Is Cholaman.Inv.&Fn overvalued or undervalued?

As of 7 November 2025, the valuation grade for Cholaman.Inv.&Fn has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 30.90, an EV to EBIT of 11.66, and a Price to Book Value of 0.55.
In comparison to its peers, Bajaj Finance is categorized as very expensive with a PE Ratio of 38.09, while Life Insurance is rated very attractive with a PE Ratio of 11.44. The high PE Ratio of Cholaman.Inv.&Fn suggests that it is trading at a premium relative to its earnings, which is not justified given its low ROE of 1.79% and ROCE of 5.68%. Notably, Cholaman.Inv.&Fn has outperformed the Sensex with a year-to-date return of 43.41% compared to the Sensex's 6.50%, but this strong performance does not mitigate its overvaluation status.