Is Guj. Credit Corp overvalued or undervalued?

Aug 25 2025 08:06 AM IST
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As of August 22, 2025, Guj. Credit Corp is considered very expensive and overvalued with a negative PE ratio of -68.75 and a year-to-date decline of 44.78%, making it an unfavorable investment compared to peers like Life Insurance and Bajaj Finance.
As of 22 August 2025, the valuation grade for Guj. Credit Corp has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently deemed overvalued, with a PE ratio of -68.75, an EV to EBIT ratio of -81.18, and a Price to Book Value of 5.49. These figures starkly contrast with peers such as Life Insurance, which has a PE ratio of 11.55 and an EV to EBITDA of 8.99, and Bajaj Finance, with a PE ratio of 31.91 and an EV to EBITDA of 18.05.

The company's financial performance is concerning, reflected in a negative ROCE of -1.80% and a ROE of -0.08%. Despite a recent one-week stock return of 4.32%, Guj. Credit Corp's year-to-date performance shows a decline of 44.78%, further emphasizing its overvaluation in the current market context. Overall, the company's ratios and peer comparisons suggest it is not a favorable investment at this time.
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