Is KJMC Financial overvalued or undervalued?

As of 30 October 2025, KJMC Financial's valuation grade has moved from fair to expensive, indicating a shift in its market perception. The company is currently overvalued, with a PE ratio of 28.99, an EV to EBIT of 17.55, and an EV to EBITDA of 14.97. In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 37.56, while Life Insurance stands out with a more attractive valuation at a PE of 11.69.
The company's financial metrics reflect a concerning trend, particularly with a ROCE of only 0.96% and an ROE of 0.49%, suggesting inefficiencies in generating returns relative to its equity. While KJMC Financial has shown strong returns over the long term, such as a 210.28% increase over three years, its recent performance has lagged behind the Sensex, with a year-to-date decline of 29.42%. This combination of high valuation ratios and poor recent performance reinforces the conclusion that KJMC Financial is overvalued in the current market.