Is Manappuram Fin. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Manappuram Finance has moved from expensive to very expensive. The company is currently overvalued based on its financial metrics. Key ratios include a PE ratio of 18.31, an EV to EBITDA of 9.96, and a Price to Book Value of 1.79.
In comparison to its peers, Life Insurance is rated fair with a PE of 11.73, while Bajaj Finance is categorized as very expensive with a PE of 31.57. The significant disparity in valuation suggests that Manappuram Finance may not justify its current price level. Notably, the company's stock has outperformed the Sensex with a year-to-date return of 39.73% compared to the Sensex's 3.69%, which further emphasizes its overvaluation in the current market context.