Is Equitas Sma. Fin overvalued or undervalued?

As of 17 October 2025, the valuation grade for Equitas Sma. Fin has moved from fair to very expensive. The company is currently overvalued, as indicated by its PE ratio of -62.35 and a price-to-book value of 1.05. Additionally, the PEG ratio stands at 0.00, highlighting a lack of growth relative to its price. The return on equity (ROE) is negative at -1.69%, and the net NPA to book value ratio is 5.63, which raises concerns about asset quality.
In comparison to its peers, HDFC Bank has a PE ratio of 22.22 and ICICI Bank stands at 20.98, both of which are significantly more favorable than Equitas Sma. Fin's metrics. Furthermore, Kotak Mahindra Bank, classified as very expensive, has a PE ratio of 32.53, further illustrating the disparity in valuation within the sector. Notably, Equitas Sma. Fin has underperformed relative to the Sensex, with a year-to-date return of -12.69% compared to the Sensex's 7.44%, reinforcing the notion of its overvaluation.