Is Ekam Leasing overvalued or undervalued?

As of 23 October 2025, the valuation grade for Ekam Leasing has moved from expensive to risky, indicating a significant shift in its financial outlook. The company is currently considered overvalued. Key ratios reveal concerning performance, with a PE ratio of -3.34, an EV to EBIT of -5.19, and a ROE of -12.25%. These figures suggest that the company is struggling to generate profits and is not effectively utilizing its equity.
In comparison to its peers, Ekam Leasing's valuation metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a PE of 11.68, highlighting the stark contrast in valuation and performance within the industry. Furthermore, Ekam Leasing's stock has underperformed relative to the Sensex, with a year-to-date return of -36.22% compared to the Sensex's 8.21%, reinforcing the notion that the company is not only overvalued but also facing significant operational challenges.