Is Manipal Fin. Cor overvalued or undervalued?

As of 23 October 2025, the valuation grade for Manipal Financial Corporation has moved from attractive to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, particularly given its troubling ratios, including a PE ratio of -30.62, an EV to EBIT of -11.84, and an EV to Sales ratio of 11.84. These figures highlight the company's negative earnings and capital employed, which are concerning for potential investors.
In comparison to its peers, Manipal Financial Corporation's valuation appears unfavorable. For instance, Bajaj Finance, categorized as very expensive, has a PE ratio of 39.07, while Life Insurance, deemed very attractive, shows a PE of 11.68. The stark contrast in these ratios suggests that Manipal Financial Corporation is not only struggling but is also priced higher relative to its financial performance. Additionally, despite a strong one-year stock return of 61.02%, the recent trends indicate a decline compared to the Sensex, which returned 5.59% over the same period, reinforcing the notion that the stock may be overvalued.