Is Khandwala Sec. overvalued or undervalued?

As of 17 October 2025, Khandwala Sec. has moved from a grade of risky to expensive, indicating a significant shift in its valuation outlook. The company is currently overvalued, as evidenced by its negative PE ratio of -17.35, an EV to EBITDA ratio of -3.61, and a ROCE of -28.22%. These figures suggest that the company's financial performance is not only poor but also unsustainable at its current price levels.
In comparison to its peers, Khandwala Sec. stands out unfavorably against Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, with a more attractive PE of 11.49. The stark contrast in valuation metrics highlights the overvaluation of Khandwala Sec. relative to its industry. Additionally, the company's stock has underperformed significantly against the Sensex, with a year-to-date return of -23.29% compared to the Sensex's 7.44%, reinforcing the notion that Khandwala Sec. is not a sound investment at this time.