Is GCM Securit. overvalued or undervalued?

Sep 22 2025 08:03 AM IST
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As of September 19, 2025, GCM Securit. is considered undervalued with a Price to Book Value of 1.14 and an EV to EBIT ratio of 0.65, despite a concerning PE Ratio of -7.40, especially when compared to peers like Bajaj Finance and Life Insurance, while its year-to-date stock performance has significantly lagged behind the Sensex.
As of 19 September 2025, the valuation grade for GCM Securit. has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be undervalued given its current metrics, particularly with a Price to Book Value of 1.14 and an EV to EBIT ratio of 0.65. Notably, the PE Ratio stands at -7.40, which is a concerning indicator of profitability.

In comparison to its peers, GCM Securit. shows a stark contrast to Bajaj Finance, which has a PE Ratio of 35.51, and Life Insurance, which boasts a PE Ratio of 11.64. This highlights the relative undervaluation of GCM Securit. within the capital markets industry. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -24.79% compared to the Sensex's 5.74%, reinforcing the notion that the stock may be undervalued relative to its potential.
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