Is KIFS Financial overvalued or undervalued?

As of 12 November 2025, KIFS Financial's valuation grade has moved from fair to attractive, indicating a positive shift in its perceived value. The company is currently considered undervalued. Key ratios supporting this assessment include a PE ratio of 19.17, an EV to EBITDA of 10.48, and a ROE of 14.45%.
In comparison with peers, KIFS Financial's PE ratio is significantly lower than that of Bajaj Finance, which stands at 34.41, and also lower than Bajaj Finserv at 33.6. Meanwhile, Life Insurance presents a more attractive valuation with a PE of 11.14, highlighting KIFS's competitive positioning within the industry. Despite recent underperformance against the Sensex, with a 1-year return of -18.87% compared to the Sensex's 7.36%, the long-term growth potential remains promising, evidenced by a remarkable 5-year return of 231.82%.