Is First Custodian overvalued or undervalued?

As of 31 October 2025, the valuation grade for First Custodian has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios include a PE ratio of 15.08, a Price to Book Value of 0.87, and a ROE of 5.74%.
In comparison to its peers, First Custodian's PE ratio is significantly lower than Bajaj Finance, which stands at 37.23, and also lower than Bajaj Finserv at 35.03. Notably, Life Insurance, categorized as very attractive, has a PE ratio of 11.62, suggesting that First Custodian is positioned favorably within its sector. While the stock has underperformed against the Sensex year-to-date, it has shown strong long-term growth with a 5-year return of 188.55%, compared to the Sensex's 111.89%.