Is First Custodian overvalued or undervalued?

As of 28 October 2025, the valuation grade for First Custodian has moved from attractive to fair, indicating a shift in its perceived value. The company is currently fairly valued, with a PE ratio of 15.17, a Price to Book Value of 0.87, and a negative EV to EBIT of -0.15. These metrics suggest that while the company is not undervalued, it also does not present an attractive investment opportunity at this time.
In comparison to its peers, First Custodian's PE ratio is significantly lower than Bajaj Finance, which stands at 38.39, and also lower than Bajaj Finserv at 36.04, both of which are considered very expensive. On the other hand, Life Insurance, which is categorized as very attractive, has a PE ratio of 11.69, indicating that First Custodian is positioned in a competitive landscape but lacks the valuation appeal of some of its peers. Additionally, the company's stock has underperformed relative to the Sensex over the past year, with a return of -14.12% compared to the Sensex's 5.78%, further reinforcing the notion of its fair valuation status.