Is Karnavati Financ overvalued or undervalued?

As of 18 November 2025, the valuation grade for Karnavati Financ has moved from risky to attractive, indicating a significant improvement in its perceived value. Despite this positive change, the company appears to be undervalued based on its current financial ratios. The PE ratio stands at -2.69, while the EV to EBITDA ratio is notably high at 72.39, suggesting that the market may not be fully recognizing the company's potential. Additionally, the ROE is concerningly low at -59.38%, which reflects challenges in generating profit from equity.
In comparison to its peers, Karnavati Financ's valuation metrics are strikingly different. For instance, Altius Telecom, classified as very attractive, has a PE ratio of 51.84, while other peers like Embassy Office REIT and Mindspace Business have significantly higher EV to EBITDA ratios of 133.34 and 54.59, respectively. This stark contrast highlights that Karnavati Financ is trading at a discount relative to its industry peers. Furthermore, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 30.23% compared to the Sensex's gain of 8.36%, reinforcing the notion that the stock may be undervalued in the current market environment.