Is Haryana Capfin overvalued or undervalued?

As of 8 August 2025, Haryana Capfin's valuation grade has moved from attractive to fair, indicating a shift in its market perception. The company is currently fairly valued, with a PE ratio of 21.65, an EV to EBIT of 16.38, and a PEG ratio of 0.26. In comparison to its peers, Life Insurance has a very attractive PE ratio of 11.83, while Bajaj Finance is considered very expensive with a PE ratio of 31.31.
While Haryana Capfin's valuation appears reasonable within its sector, it is important to note that its return on equity (ROE) stands at a low 1.64%, which may raise concerns about its profitability compared to peers. Despite recent stock performance showing a 6.95% return over the past week against a -0.92% decline in the Sensex, the year-to-date return of -27.71% suggests challenges ahead. Overall, the company's current valuation reflects a cautious outlook amidst a competitive landscape.