Is India Lease Dev. overvalued or undervalued?

As of 17 October 2025, the valuation grade for India Lease Development has moved from risky to very expensive, indicating a significant deterioration in its perceived value. The company is currently overvalued, with a PE ratio of -131.08, an EV to EBIT of -15.58, and an EV to Sales ratio of 15.58. These ratios suggest that the company's financial performance is not only weak but also that it is trading at a premium compared to its earnings and sales.
In comparison to its peers, India Lease Development's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a PE of 11.49, highlighting the disparity in valuation within the sector. Additionally, the company's negative ROCE of -1.26% and ROE of -1.15% further emphasize its underperformance relative to its competitors. Notably, while the stock has shown a 1-month return of 19.82%, it has underperformed against the Sensex over the year, which may reinforce concerns about its current valuation.