Is Khandwala Sec. overvalued or undervalued?

As of 23 October 2025, Khandwala Sec. has moved from an expensive to a risky valuation grade. The company appears to be overvalued based on its financial metrics, with a PE ratio of -18.76, an EV to EBITDA of -4.04, and a ROCE of -28.22%. These figures indicate significant financial distress, particularly the negative earnings ratios, which are alarming for potential investors.
In comparison to its peers, Khandwala Sec.'s valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a much healthier PE of 11.68. The stark contrast in these ratios highlights Khandwala Sec.'s precarious position within the capital markets industry. Additionally, the company's stock performance has not kept pace with the Sensex, which has shown a YTD return of 8.21%, indicating that Khandwala Sec. is not only overvalued but also underperforming relative to broader market trends.