Is JMJ Fintech overvalued or undervalued?

As of 11 July 2025, JMJ Fintech's valuation grade has moved from attractive to fair, indicating a shift in market perception. The company is currently fairly valued, with a PE ratio of 15.15, an EV to EBITDA of 6.88, and a ROE of 21.88%. In comparison to its peers, Life Insurance has a PE of 12.07 and EV to EBITDA of 9.47, while Bajaj Finance is deemed very expensive with a PE of 34.86 and an EV to EBITDA of 19.46.
Despite the fair valuation, JMJ Fintech has experienced significant stock price declines recently, with a year-to-date return of -24.97%, contrasting sharply with a 5.58% gain in the Sensex over the same period. This underperformance may suggest that the market is currently undervaluing the company's strong fundamentals, particularly its high ROCE of 48.57%.