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, indicating a significant shift in its perceived value. The company is currently assessed as overvalued, primarily due to its troubling financial ratios. The PE ratio stands at -45.29, while the EV to EBITDA and EV to EBIT both reflect the same negative figure of -45.30. Additionally, the Price to Book Value is at 3.34, which further suggests that the stock is not just overpriced but potentially unsustainable.
In comparison to its peers, Kapil Raj Financ's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, boasting a PE of 11.64. This disparity highlights the challenges faced by Kapil Raj Financ within the Non-Banking Financial Company sector. The company's stock has underperformed significantly against the Sensex, with a year-to-date return of -91.16%, while the Sensex has gained 5.74%. This underperformance reinforces the conclusion that Kapil Raj Financ is overvalued in its current state.