Is Mangal Credit overvalued or undervalued?

As of 28 October 2025, the valuation grade for Mangal Credit has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 30.63, an EV to EBIT of 14.60, and a Price to Book Value of 2.73, which are substantially higher than many peers in the industry.
In comparison, Bajaj Finance has a PE ratio of 38.39 and an EV to EBITDA of 20.31, while Life Insurance shows a more attractive valuation with a PE of 11.69 and an EV to EBITDA of 9.11. This highlights that Mangal Credit's valuation is not only high in absolute terms but also when compared to its peers. Despite a strong performance in stock returns relative to the Sensex over the past year, the current valuation metrics suggest that Mangal Credit is overvalued in the context of its financial performance and market positioning.