Is Indus Finance overvalued or undervalued?

As of 30 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 considered overvalued. Key ratios include a PE ratio of 27.09, an EV to EBITDA of 17.72, and a PEG ratio of 0.24, which suggests that despite the growth potential, the stock price may not be justified by its earnings growth.
In comparison to its peers, Indus Finance's PE ratio is significantly higher than that of Life Insurance, which stands at 11.69, and even higher than Bajaj Finserv at 35.5. This indicates that Indus Finance may be trading at a premium relative to companies that are performing better in terms of valuation metrics. Additionally, while Indus Finance has shown strong stock performance with a 1-year return of 112.87% compared to the Sensex's 5.58%, this outperformance does not necessarily imply that the stock is a sound investment at its current valuation.