Is Indus Finance overvalued or undervalued?

As of 10 November 2025, the valuation grade for Indus Finance has moved from expensive to very expensive. This indicates a significant shift in perception regarding its valuation, suggesting that the company is currently overvalued. Key ratios highlight this position, with a PE Ratio of 41.16, an EV to EBITDA of 20.01, and a Price to Book Value of 0.20, which are considerably high compared to industry norms.
In comparison to peers, Bajaj Finance has a PE of 38.76 and an EV to EBITDA of 20.44, while Bajaj Finserv stands at a PE of 35.58 and an EV to EBITDA of 13.13. These figures further reinforce the notion that Indus Finance is overvalued in its sector. Despite recent strong stock performance, including a 54.46% return over the past year compared to the Sensex's 5.09%, the current valuation metrics suggest that investors should approach with caution.