Is Kapil Raj Financ overvalued or undervalued?

As of 23 October 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 deemed overvalued based on its financial metrics. Key ratios include a PE ratio of -4080.62, an EV to EBIT of -39.21, and a Price to Book Value of 0.29, all of which suggest severe financial distress and lack of profitability.
In comparison to peers, Kapil Raj Financ's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, with a PE ratio of 11.68. This highlights the substantial gap in performance and valuation within the sector. Furthermore, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -92.03% compared to the Sensex's 8.21%, reinforcing the notion that Kapil Raj Financ is currently overvalued.