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. The company is currently considered overvalued, with a PE ratio of -10.36, an EV to EBIT of -14.24, and an EV to Sales ratio of 14.24. These negative ratios indicate significant financial distress and suggest that the market is pricing the company unfavorably compared to its earnings and sales potential.
In comparison to peers, Manipal Financial Corporation's valuation metrics are starkly unfavorable. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 35.51, while Life Insurance is rated very attractive with a PE of 11.64. The stark contrast in these ratios highlights the challenges faced by Manipal Financial Corporation within the Non-Banking Financial Company (NBFC) sector. Additionally, the company's recent stock performance has been poor, with a 1-month return of -25.68%, while the Sensex has gained 1.20%, further reinforcing the notion of overvaluation.