Is Kanungo Financi. overvalued or undervalued?

As of 9 October 2025, the valuation grade for Kanungo Financial has moved from attractive to very attractive. Based on the analysis, the company appears to be undervalued. Key ratios include a PE ratio of 3.85, a Price to Book Value of 0.61, and an EV to EBIT of -3.24, which indicate significant undervaluation compared to industry standards.
In comparison to peers, Kanungo Financial's PE ratio of 3.85 is substantially lower than Bajaj Finance's 36.57 and Life Insurance's 11.62, both of which are considered very expensive. Additionally, the PEG ratio of 0.00 further emphasizes the potential for growth at a low price. While the stock has underperformed against the Sensex in the short term, it has shown a positive return of 13.7% over the past year, reinforcing the notion that it is undervalued relative to its growth prospects.