Is HB Leasing &Fin. overvalued or undervalued?

As of 10 October 2025, the valuation grade for HB Leasing & Fin. has moved from risky to very expensive. The company appears to be overvalued given its negative PE ratio of -17.11 and EV to EBIT of -15.77, which indicate significant financial distress. Additionally, the Price to Book Value stands at 3.00, suggesting that the market is pricing the stock at three times its book value despite the underlying negative performance metrics.
In comparison to its peers, HB Leasing & Fin. is notably less favorable than Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, which boasts a PE of 11.65. The negative returns of HB Leasing & Fin. over the past year at -27.52% starkly contrast with the Sensex's modest gain of 1.09%, further reinforcing the notion that the stock is overvalued in its current state.