Is Indbank Merchant overvalued or undervalued?

Sep 21 2025 08:03 AM IST
share
Share Via
As of September 19, 2025, Indbank Merchant is fairly valued with a PE ratio of 19.23, but has underperformed with a -27.49% return year-to-date, making it less attractive compared to peers like Bajaj Finance and Life Insurance.
As of 19 September 2025, the valuation grade for Indbank Merchant has moved from attractive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 19.23, an EV to EBITDA ratio of 5.44, and a ROE of 8.46%.

In comparison to peers, Indbank Merchant's PE ratio is significantly lower than Bajaj Finance, which stands at 35.51, indicating that Indbank is more reasonably priced relative to its earnings. However, it is also higher than Life Insurance, which has a PE ratio of 11.64, suggesting that while Indbank is fairly valued, there are more attractive options in the market. Additionally, the company's stock has underperformed year-to-date with a return of -27.49% compared to the Sensex's gain of 5.74%, reinforcing the notion that it may not be the best investment at this time.
{{stockdata.stock.stock_name.value}} Live

{{stockdata.stock.price.value}} {{stockdata.stock.price_difference.value}} ({{stockdata.stock.price_percentage.value}}%)

{{stockdata.stock.date.value}} | BSE+NSE Vol: {{stockdata.index_name}} Vol: {{stockdata.stock.bse_nse_vol.value}} ({{stockdata.stock.bse_nse_vol_per.value}}%)


Our weekly and monthly stock recommendations are here
Loading...
{{!sm.blur ? sm.comp_name : ''}}
Industry
{{sm.old_ind_name }}
Market Cap
{{sm.mcapsizerank }}
Date of Entry
{{sm.date }}
Entry Price
Target Price
{{sm.target_price }} ({{sm.performance_target }}%)
Holding Duration
{{sm.target_duration }}
Last 1 Year Return
{{sm.performance_1y}}%
{{sm.comp_name}} price as on {{sm.todays_date}}
{{sm.price_as_on}} ({{sm.performance}}%)
Industry
{{sm.old_ind_name}}
Market Cap
{{sm.mcapsizerank}}
Date of Entry
{{sm.date}}
Entry Price
{{sm.opening_price}}
Last 1 Year Return
{{sm.performance_1y}}%
Related News