Is Indus Finance overvalued or undervalued?

As of 17 October 2025, the valuation grade for Indus Finance has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently assessed as overvalued based on its key financial ratios. Notably, the PE ratio stands at 25.13, while the EV to EBITDA ratio is 16.82, and the PEG ratio is exceptionally low at 0.22, suggesting that despite a high price relative to earnings, growth expectations may not justify the valuation.
When compared to peers, Indus Finance's valuation appears less favorable. For instance, Bajaj Finance is classified as very expensive with a PE ratio of 38.21, while Life Insurance is deemed very attractive with a PE of 11.49. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-year return of 94.15% compared to the Sensex's 3.64%. However, the overall valuation metrics suggest that Indus Finance is overvalued in the current market context.