Is Guj. State Fin. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Guj. State Fin. has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently assessed as undervalued, particularly when considering its headline ratios, which include a PE ratio of -0.90, an EV to EBIT of -227.24, and an EV to Sales ratio of -774.89. These negative figures suggest substantial challenges, yet the attractive valuation grade implies potential upside.
In comparison to peers, Guj. State Fin. stands out with its attractive valuation despite its negative ratios, especially when juxtaposed with Bajaj Finance, which is deemed very expensive with a PE ratio of 38.21, and Life Insurance, which is very attractive with a PE ratio of 11.49. While the stock has underperformed against the Sensex in the short term, with a year-to-date return of -40.69% compared to the Sensex's 7.44%, its long-term performance over five years shows a remarkable return of 514.29%, reinforcing the notion of its undervaluation potential.