Is Lak. Fin. & Indl overvalued or undervalued?

As of 17 November 2025, the valuation grade for Lak. Fin. & Indl has moved from fair to risky, indicating a significant deterioration in its valuation outlook. The company appears to be overvalued, particularly when considering its headline ratios, which include a PE ratio of -27.71, an EV to EBITDA of -11.83, and a Price to Book Value of 0.99. These metrics suggest that the company is not generating sufficient earnings relative to its valuation.
In comparison to its peers, Lak. Fin. & Indl's valuation stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 34.85, while Life Insurance boasts a more attractive PE of 11.33. The negative ROE of -3.57% and ROCE of -8.73% further underscore the company's struggles relative to its competitors. Additionally, the recent stock performance has been disappointing, with a year-to-date return of -15.27%, contrasting sharply with the Sensex's positive return of 10.02% during the same period.