Is Cil Securities overvalued or undervalued?

As of 4 February 2025, the valuation grade for Cil Securities has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued, supported by a PE ratio of 11.21, an EV to EBIT of 5.48, and an EV to EBITDA of 4.89, which are significantly lower than many of its peers. For instance, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, while Bajaj Finance is very expensive with a PE ratio of 35.01.
Cil Securities' valuation metrics suggest it is positioned favorably compared to its industry peers, reinforcing the notion of being undervalued. Despite recent stock performance showing a decline of 25.41% year-to-date versus a 5.64% gain in the Sensex, the long-term outlook remains strong with a 3-year return of 73.26%. Overall, the current valuation indicates that Cil Securities presents a compelling investment opportunity.