Is Dharni Capital overvalued or undervalued?

As of 24 October 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, with a PE ratio of 36.69, a Price to Book Value of 5.81, and an EV to EBITDA ratio of 32.03. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Dharni Capital's PE ratio is lower than Bajaj Finance's 38.9 but significantly higher than Life Insurance's 11.55, which is categorized as very attractive. Additionally, its EV to EBITDA ratio is comparable to Bajaj Finserv's 36.21, yet still higher than the more attractive valuations seen in other peers like I R F C, which has an EV to EBITDA of 14.14. Despite its strong recent performance, with a year-to-date return of 27.75% compared to the Sensex's 7.77%, the current valuation metrics indicate that Dharni Capital is overvalued in the market.