Is Guj. State Fin. overvalued or undervalued?
As of October 23, 2025, Guj. State Fin. is considered risky due to severe financial distress, reflected in its negative valuation metrics and poor stock performance, significantly underperforming compared to peers like Bajaj Finance and Life Insurance.
As of 23 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 appears to be overvalued based on its current metrics, with a PE ratio of -0.93, an EV to EBIT of -228.21, and an EV to Sales ratio of -778.18, all suggesting severe financial distress. In comparison to its peers, Guj. State Fin. stands out negatively; for instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a PE of 11.68, highlighting the stark contrast in valuation and financial health. The company's recent stock performance has been poor, with a year-to-date return of -38.99% compared to the Sensex's gain of 8.21%, further reinforcing the notion that Guj. State Fin. is overvalued in its current state.
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