Is Mehta Integrat. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Mehta Integrat. has moved from expensive to very expensive. This indicates a significant shift in perception regarding the company's valuation. The company is currently considered overvalued, with a PE ratio of 13.15, which is notably lower than peers like Bajaj Finance at 36.56 and Jio Financial at 122.23. Additionally, the EV to EBITDA ratio stands at -1.23, highlighting potential concerns regarding profitability.
In comparison to its peers, Mehta Integrat.'s valuation metrics suggest it is not only overvalued but also underperforming in terms of return on equity, which is at a mere 2.78%. Other peers, such as Life Insurance with a PE ratio of 11.65, present a more attractive valuation. The recent stock performance has been poor, with a year-to-date return of -26.92%, contrasting sharply with the Sensex's positive return of 5.58% during the same period, further reinforcing the overvaluation narrative.