Is Guj. State Fin. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Guj. State Fin. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently deemed overvalued, as evidenced by its troubling ratios, including a PE Ratio of -0.93, an EV to EBIT of -228.39, and an EV to Sales of -778.81. These negative figures suggest that the company is struggling to generate profits relative to its valuation metrics.
In comparison to its peers, Guj. State Fin. stands out unfavorably. For instance, Bajaj Finance, classified as very expensive, has a PE Ratio of 37.84, while Life Insurance, deemed very attractive, has a PE Ratio of 11.69. This stark contrast highlights the challenges faced by Guj. State Fin. in the finance sector. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -38.67%, significantly lagging behind the Sensex's positive return of 5.72% during the same period.