Is Kanungo Financi. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Kanungo Financial has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as undervalued, particularly when considering its low PE ratio of 4.04, a price to book value of 0.64, and an EV to EBIT of -3.43. These ratios suggest that the company is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Kanungo Financial's valuation stands out against Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, with a PE of 11.65. This stark contrast highlights the potential upside for Kanungo Financial, as it operates in a sector where other companies are valued much higher. Additionally, while the stock has outperformed the Sensex in the short term, with a 1-year return of 25.32% compared to the Sensex's 1.09%, the long-term performance remains a concern, as indicated by a 3-year decline of 38.88%. Overall, the current valuation suggests that Kanungo Financial presents an attractive investment opportunity.