Is Kapil Raj Financ overvalued or undervalued?

As of 29 August 2025, the valuation grade for Kapil Raj Financ has moved from risky to very expensive. This indicates a significant deterioration in its valuation outlook. The company is currently assessed as overvalued, with a PE ratio of -60.39, an EV to EBIT of -60.40, and a Price to Book Value of 4.45. These ratios suggest that the company's financial performance is not only poor but also that its market valuation does not reflect its underlying fundamentals.
When compared to peers, Kapil Raj Financ stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 31.3, while Life Insurance boasts a much more attractive PE of 11.08. The stark contrast in these ratios highlights the overvaluation of Kapil Raj Financ relative to its competitors. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -88.21%, compared to a modest gain of 2.14% for the index. This trend reinforces the notion that Kapil Raj Financ is not only overvalued but also struggling in the current market environment.