Is Krishna Capital overvalued or undervalued?

As of 2 April 2024, Krishna Capital's valuation grade has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently deemed overvalued. Key ratios include a PE Ratio of 8.69, an EV to EBIT of 8.50, and a ROCE of only 2.12%, which raises concerns about its efficiency and profitability compared to its peers.
In comparison to its industry peers, Krishna Capital's PE ratio is notably lower than Life Insurance, which stands at 12.54, while Bajaj Finance is significantly higher at 35.01. This suggests that Krishna Capital is not only overvalued relative to its own historical performance but also when benchmarked against its competitors. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 28.57% compared to the Sensex's gain of 5.62%, reinforcing the notion of overvaluation.