Is Ekam Leasing overvalued or undervalued?

As of 10 October 2025, Ekam Leasing's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a Price to Earnings (PE) ratio of -3.74, an EV to EBIT of -5.61, and a Return on Equity (ROE) of -12.25%. These ratios suggest significant financial distress, particularly with negative earnings and returns.
In comparison to its peers, Ekam Leasing's valuation metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a PE of 11.65, both indicating a much healthier financial position. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -28.65% compared to the Sensex's 5.58%. This performance further reinforces the conclusion that Ekam Leasing is overvalued in its current market context.