Is Khandwala Sec. overvalued or undervalued?

As of 10 October 2025, Khandwala Sec. has moved from a valuation grade of risky to expensive. The company is currently overvalued, indicated by a PE ratio of -18.05 and an EV to EBITDA of -3.82, both of which are significantly negative. Additionally, the ROCE stands at -28.22%, highlighting the company's poor return on capital employed.
In comparison to its peers, Khandwala Sec. is underperforming. For instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts a more attractive PE of 11.65. Despite a recent price of 22.01, the stock has underperformed against the Sensex, with a year-to-date return of -20.17% compared to the Sensex's positive return of 5.58%. This further reinforces the conclusion that Khandwala Sec. is overvalued in the current market environment.