Is Kama Holdings overvalued or undervalued?

As of 3 June 2025, Kama Holdings has moved from a fair to an attractive valuation grade, indicating a positive shift in its market perception. The company is currently considered undervalued, supported by a PE ratio of 13.86, an EV to EBIT of 6.45, and an EV to EBITDA of 4.68. These ratios suggest that Kama Holdings is trading at a lower valuation compared to its peers.
In comparison to its industry peers, Life Insurance has a PE ratio of 12.54 and an EV to EBITDA of 9.89, while Bajaj Finance is significantly more expensive with a PE ratio of 35.01 and an EV to EBITDA of 19.51. Kama Holdings' strong return on capital employed (ROCE) at 17.52% and return on equity (ROE) at 8.72% further reinforce its attractiveness. Additionally, the company's stock has outperformed the Sensex with a year-to-date return of 13.55% compared to the Sensex's 5.62%, highlighting its strong market performance.