Is M & M Fin. Serv. overvalued or undervalued?

As of 19 March 2025, the valuation grade for M & M Fin. Serv. has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 16.95, an EV to EBIT of 13.40, and a ROE of 10.51%. In comparison to its peers, M & M Fin. Serv. stands out against Life Insurance, which has a PE of 12.54, and Bajaj Finance, which is classified as very expensive with a PE of 35.01.
Despite the fair valuation, M & M Fin. Serv. has shown strong performance with a 1-month return of 14.94%, significantly outpacing the Sensex's 3.87% during the same period. This performance, combined with its competitive ratios, suggests that while the stock is fairly valued, it may still present an attractive investment opportunity within the current market landscape.