Is Mangal Credit overvalued or undervalued?

As of 25 June 2025, Mangal Credit's valuation grade has moved from expensive to very expensive, indicating a significant shift in its market positioning. The company is currently deemed overvalued. Key ratios such as the PE Ratio at 29.78, Price to Book Value at 2.81, and EV to EBITDA at 14.93 suggest that the stock is trading at a premium compared to its peers.
In comparison to its industry peers, Mangal Credit's PE Ratio is notably higher than Life Insurance, which stands at 12.45, and IRFC at 28.04, both of which are classified as fair. Additionally, Bajaj Finance, categorized as very expensive, has a PE Ratio of 34.67, but it still highlights the elevated valuation of Mangal Credit within its sector. Despite recent strong returns, including a 90.31% increase over the past year compared to the Sensex's 6.02%, the current valuation metrics indicate that Mangal Credit is not a compelling investment at this time.