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 appears to be overvalued based on its financial ratios, including a PE ratio of -35.59, an EV to EBITDA of -10.22, and a Price to Book Value of 0.50. These figures indicate significant concerns regarding profitability and valuation relative to its assets.
In comparison to its peers, Madhusudan Sec. stands out negatively, especially when juxtaposed with Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, which boasts a PE ratio of 11.65. The stark contrast in these ratios underscores Madhusudan Sec.'s overvaluation. Additionally, while the company has shown strong returns over the long term, its recent performance has lagged behind the Sensex, with a year-to-date return of -10.67% compared to the Sensex's 5.58%. Overall, the evidence suggests that Madhusudan Sec. is overvalued in the current market.