Is Ind Bank Housing overvalued or undervalued?

As of 12 September 2025, the valuation grade for Ind Bank Housing has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially in comparison to its peers. Notably, the PE ratio stands at -40.88, while the EV to EBIT and EV to EBITDA ratios are both at -166.17, reflecting substantial losses. In contrast, peers like HUDCO and LIC Housing Finance have PE ratios of 15.58 and 5.67, respectively, highlighting the disparity in valuation.
Despite the negative financial metrics, Ind Bank Housing's valuation appears appealing against its peer group, which includes companies like PNB Housing with a PE ratio of 10.65 and Can Fin Homes at 11.23. The company has underperformed in the short term, with a year-to-date return of -22.63%, compared to a 4.82% gain in the Sensex. However, its long-term performance remains robust, with a 3-year return of 55.19%, suggesting potential for recovery and growth in the future.