Is Madhusudan Sec. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Madhusudan Sec. has moved from risky to very expensive. The company is currently overvalued, as indicated by its significant negative PE ratio of -35.59 and an EV to EBITDA of -10.22. Additionally, the ROCE stands at -1.13%, which further underscores the financial challenges faced by the company.
In comparison to its peers, Madhusudan Sec. shows stark contrasts; for instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance boasts a much more attractive PE of 11.65 and an EV to EBITDA of 9.08. The disparity in these ratios highlights Madhusudan Sec.'s overvaluation in the current market context. Despite recent stock performance showing a 1-week return of 8.38% compared to the Sensex's 1.59%, the long-term outlook remains concerning, particularly with a year-to-date return of -10.67% against the Sensex's 5.58%.