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 ratio of -10.22. Additionally, the ROCE stands at -1.13%, highlighting poor capital efficiency.
In comparison to peers, Madhusudan Sec. shows stark contrasts; for instance, Bajaj Finance has a PE ratio of 36.56, while Life Insurance boasts an EV to EBITDA of 9.08, both reflecting more favorable valuations. Despite recent stock performance where Madhusudan Sec. outperformed the Sensex over the past week and month, the long-term outlook remains concerning, particularly with a year-to-date return of -10.67% compared to the Sensex's 5.58%.