Is Dalal Street Inv overvalued or undervalued?

As of 19 September 2025, the valuation grade for Dalal Street Inv has moved from very expensive to risky. The company is currently assessed as overvalued, given its negative PE ratio of -12.75, an EV to EBITDA ratio of -14.51, and a ROE of -3.22%. These figures indicate significant financial distress compared to its peers.
In comparison, Bajaj Finance, categorized as very expensive, has a PE ratio of 35.51, while Life Insurance, deemed very attractive, shows a PE of 11.64. The stark contrast in these ratios highlights Dalal Street Inv's unfavorable position within the Non-Banking Financial Company (NBFC) sector. Additionally, the company's recent stock performance has been underwhelming, with a one-year return of -22.99%, significantly lagging behind the Sensex's -0.67% return in the same period.