Is Manipal Fin. Cor overvalued or undervalued?

As of 19 September 2025, the valuation grade for Manipal Financial Corporation has moved from attractive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued at this time. Key ratios reflect concerning fundamentals, with a PE ratio of -10.36, an EV to EBIT of -14.24, and an EV to Sales ratio of 14.24, which are all negative or excessively high, suggesting that the company's earnings and sales are not justifying its current price.
In comparison to its peers, Manipal Financial Corporation's valuation stands out negatively. For instance, Bajaj Finance is categorized as very expensive with a PE ratio of 35.51, while Life Insurance is considered very attractive with a PE of 11.64. This stark contrast highlights the challenges faced by Manipal Financial Corporation in maintaining investor confidence. Additionally, the company's stock has underperformed in the short term, with a 1-month return of -25.68% compared to a modest 1.20% return for the Sensex, further reinforcing the notion of overvaluation.