Is Khandwala Sec. overvalued or undervalued?

As of 10 October 2025, Khandwala Sec. has moved from a grade of risky to expensive, indicating a deterioration in its valuation outlook. The company is currently assessed as overvalued based on its negative PE ratio of -18.05, an EV to EBITDA of -3.82, and a ROCE of -28.22%. These figures suggest significant operational challenges and a lack of profitability, which are concerning for investors.
In comparison to its peers, Khandwala Sec.'s valuation metrics stand out negatively. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 36.56, while Life Insurance is considered very attractive with a PE of 11.65. The stark contrast in these ratios highlights Khandwala Sec.'s unfavorable position in the market. Additionally, the company's stock has underperformed against the Sensex, with a year-to-date return of -20.17% compared to the Sensex's gain of 5.58%. This further reinforces the view that Khandwala Sec. is currently overvalued.