Is Kapil Raj Financ overvalued or undervalued?

As of 19 September 2025, the valuation grade for Kapil Raj Financ has moved from very expensive to risky. The company is currently assessed as overvalued, given its significantly negative PE ratio of -45.29 and an EV to EBIT ratio also at -45.30. Additionally, the Price to Book Value stands at 3.34, indicating a premium over its book value, which is not justified by its financial performance.
In comparison with peers, Bajaj Finance has a PE ratio of 35.51, while Life Insurance shows a much more attractive PE of 11.64. This stark contrast highlights the overvaluation of Kapil Raj Financ relative to its industry. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -91.16%, significantly underperforming the Sensex, which has returned 5.74% in the same period.