Is Inani Securities overvalued or undervalued?

As of 7 November 2025, Inani Securities has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial metrics. The PE ratio stands at 17.94, while the Price to Book Value is notably low at 0.56, indicating a potential disconnect between market price and intrinsic value. Additionally, the EV to EBIT and EV to EBITDA ratios are both at -0.48, which raises concerns about profitability and operational efficiency.
In comparison to its peers, Inani Securities' valuation appears less favorable. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 38.09, while Life Insurance is considered very attractive with a PE of 11.44. The disparity in these ratios suggests that Inani Securities may not be justified in its current pricing relative to its peers. Furthermore, the company's stock has underperformed against the Sensex, particularly in the year-to-date period, where it has declined by 19.68% compared to the Sensex's gain of 6.50%. This trend reinforces the view that Inani Securities is overvalued in the current market environment.