Is Kapil Raj Financ overvalued or undervalued?

As of 17 October 2025, the valuation grade for Kapil Raj Financ has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued based on its extreme PE ratio of -4266.60, an EV to EBIT of -41.07, and a price to book value of 0.31. These figures suggest that the market is pricing the company at an unsustainable level relative to its earnings and asset base.
In comparison to its peers, Kapil Raj Financ's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, which boasts a PE of 11.49. The significant disparity in these ratios highlights the overvaluation of Kapil Raj Financ within the Non-Banking Financial Company (NBFC) sector. Additionally, the company's stock has underperformed drastically, with a year-to-date return of -91.67% compared to a 7.44% return for the Sensex, reinforcing the notion that the stock is overvalued.