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 based on its financial ratios, which include a PE ratio of -62.35, a price to book value of 1.05, and a PEG ratio of 0.00. These figures indicate significant financial distress, as evidenced by a negative return on equity (ROE) of -1.69% and a negative return on assets (ROA) of -0.19%.
In comparison to its peers, Equitas Sma. Fin's valuation stands out unfavorably. For instance, HDFC Bank, classified as expensive, has a PE ratio of 22.22, while ICICI Bank, rated as fair, has a PE ratio of 20.98. Other banks like Kotak Mahindra Bank and IDFC First Bank are also categorized as very expensive, with PE ratios of 32.53 and 44.86, respectively. The stock has underperformed relative to the Sensex, with a year-to-date return of -12.69% compared to the Sensex's positive return of 7.44%. Overall, the current valuation suggests that Equitas Sma. Fin is not a favorable investment at this time.