Is First Custodian overvalued or undervalued?

As of 31 October 2025, First Custodian's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued, supported by a PE ratio of 15.08, a price-to-book value of 0.87, and a negative EV to EBIT ratio of -0.21, which suggests that the market may not be fully recognizing its potential. In comparison to its peers, First Custodian's valuation metrics stand out, particularly against Bajaj Finance, which has a significantly higher PE ratio of 37.23, and Life Insurance, which boasts a PE of 11.62. This positions First Custodian favorably within the Non-Banking Financial Company (NBFC) sector. Additionally, while the stock has underperformed the Sensex year-to-date with a return of -40.76% compared to the Sensex's 7.42%, its strong long-term performance over 5 years, with a return of 188.55%, suggests resilience and potential for recovery.