Is Manraj Hsg.Fin. overvalued or undervalued?

As of 14 August 2025, the valuation grade for Manraj Housing Finance has moved from risky to attractive, indicating a significant improvement in its perceived investment quality. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 28.50, a PEG ratio of 0.07, and an EV to Capital Employed ratio of 5.30, which suggest that the stock may be trading at a discount relative to its growth potential.
In comparison to its peers, Manraj Housing Finance's PE ratio is notably higher than HUDCO's 15.04 and LIC Housing Finance's 5.68, both of which are categorized as attractive. However, its negative Price to Book Value and EV to EBIT ratios indicate potential concerns regarding profitability and asset valuation. The company's recent stock performance has outpaced the Sensex over the past year, with a return of 52.16% compared to the Sensex's 1.89%, reinforcing the narrative that it may be undervalued in the current market context.