Is J J Finance Corp overvalued or undervalued?

As of 17 July 2025, J J Finance Corp's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, as evidenced by its PE ratio of 8.94, which is lower than peers such as Life Insurance with a PE of 12.12 and Bajaj Finance at 34.51. Additionally, the EV to EBITDA ratio stands at 7.99, which is also less favorable compared to the industry benchmarks.
In terms of financial performance, J J Finance Corp's ROCE is at 4.93% and ROE is at 2.48%, both of which are considerably lower than the industry averages. The company's valuation metrics suggest that it is not only overvalued relative to its peers but also underperforming in terms of returns. The recent stock performance has been negative, with a year-to-date return of -22.72% compared to a 5.27% increase in the Sensex, reinforcing the notion that the stock is not a favorable investment at its current price of 31.70.