Is Indus Finance overvalued or undervalued?

As of 1 July 2025, the valuation grade for Indus Finance has moved from expensive to fair. The company is currently fairly valued based on its financial metrics. Key ratios include a PE ratio of 35.70, an EV to EBIT of 21.33, and a PEG ratio of 0.94, indicating a reasonable growth expectation relative to its price.
In comparison to peers, Indus Finance's PE ratio is significantly higher than Life Insurance's 12.71 but lower than Bajaj Finserv's 36.92, which is categorized as expensive. Additionally, its EV to EBITDA of 21.08 aligns closely with I R F C's 21.88, both being in the fair valuation range. Notably, Indus Finance has outperformed the Sensex significantly over the past year, with a return of 131.89% compared to the Sensex's 5.31%, reinforcing its current valuation stance.