Is Ekam Leasing overvalued or undervalued?

As of 17 October 2025, the valuation grade for Ekam Leasing has moved from risky to expensive. The company is currently overvalued, with a PE ratio of -3.54, an EV to EBITDA of -5.41, and a Price to Book Value of 0.47. These ratios indicate significant financial distress, particularly highlighted by the negative earnings metrics.
In comparison to its peers, Ekam Leasing's valuation stands out unfavorably against Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, with a PE ratio of 11.49. The stark contrast in these ratios suggests that Ekam Leasing is not only overvalued but also struggling in its operational performance, as evidenced by a negative ROCE of -9.09% and ROE of -12.25%. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -32.32% compared to the Sensex's 7.44%.