Is Esaar (India) overvalued or undervalued?

As of 17 November 2025, the valuation grade for Esaar (India) has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently deemed overvalued. Key ratios highlight this concern: the PE ratio stands at -3.12, the EV to EBIT is exceptionally high at 61.45, and the EV to EBITDA is also elevated at 53.20.
In comparison to its peers, Esaar's valuation is starkly out of line; for instance, Bajaj Finance has a PE ratio of 34.85 and an EV to EBITDA of 19.61, while Life Insurance boasts a much more attractive PE of 11.33 and an EV to EBITDA of 9.36. Despite a strong year-to-date return of 106.00% compared to the Sensex's 8.72%, the underlying financial metrics suggest that Esaar is not justified at its current price of 12.36, especially given its negative ROCE of -17.24% and ROE of -34.57%.