Is Manappuram Fin. overvalued or undervalued?

As of 8 October 2025, the valuation grade for Manappuram Finance has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its key financial ratios, including a PE ratio of 30.99, an EV to EBITDA of 11.81, and a Price to Book Value of 1.99. These figures suggest that the stock is trading at a premium compared to its earnings and asset value.
In comparison to its peers, Manappuram Finance's valuation appears high, especially when contrasted with Bajaj Finance, which has a PE ratio of 36.53, and Life Insurance, which is valued more attractively with a PE of 11.6. Furthermore, while the company has shown impressive returns year-to-date at 55.56%, this performance is not enough to justify its current valuation in the context of its financial metrics and peer comparisons. Overall, the analysis indicates that Manappuram Finance is overvalued in the current market environment.