Is Dharni Capital overvalued or undervalued?

As of 9 July 2025, the valuation grade for Dharni Capital has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios highlight this assessment, with a PE Ratio of 34.16, an EV to EBITDA of 30.67, and a PEG Ratio of 3.59, all of which are substantially higher than industry norms.
In comparison to its peers, Dharni Capital's PE Ratio is notably higher than Life Insurance's 12.38 and IRFC's 27.65, both of which are classified as fair. Additionally, Bajaj Finance, which is also categorized as very expensive, has a PE Ratio of 35.12, suggesting that while Dharni is in line with some competitors, it remains at the upper end of the valuation spectrum. The company's stock has outperformed the Sensex over the past year, returning 20.27% compared to the Sensex's 3.96%, yet this does not mitigate the overvaluation concerns based on its current financial metrics.