Is Indbank Merchant overvalued or undervalued?

As of 27 June 2025, the valuation grade for Indbank Merchant has moved from attractive to fair. The company is currently fairly valued based on its metrics, with a PE ratio of 18.36, an EV to EBITDA ratio of 6.81, and a ROE of 10.15%. In comparison to its peers, Life Insurance has a PE ratio of 12.53 and an EV to EBITDA of 9.88, while I R F C maintains a PE of 28.13 and an EV to EBITDA of 21.81, indicating that Indbank is positioned competitively within the market.
Despite the recent stock performance showing a 3.92% return over the past week compared to a 2.00% return for the Sensex, the year-to-date performance of -24.42% against the Sensex's 7.58% suggests potential concerns about its valuation sustainability. Overall, Indbank Merchant's current valuation reflects a balanced outlook, aligning closely with its peers in the capital markets industry.