Is Mehta Securities overvalued or undervalued?

Nov 15 2025 08:09 AM IST
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As of November 14, 2025, Mehta Securities is considered overvalued with a PE ratio of 119.16 and negative earnings metrics, significantly higher than its peers like Bajaj Finance and Bajaj Finserv, despite its strong stock performance over the past three years.
As of 14 November 2025, the valuation grade for Mehta Securities has moved from risky to expensive. The company appears to be overvalued based on its current financial ratios, including a PE ratio of 119.16, an EV to EBITDA of -16.63, and a ROE of 2.60%. In comparison to its peers, Bajaj Finance has a PE ratio of 34.62 and Bajaj Finserv has a PE of 34.07, both indicating a significant premium on Mehta Securities.

Given these ratios and the peer comparison, Mehta Securities is not only trading at a high valuation but also shows negative earnings metrics, which further supports the conclusion of being overvalued. The company's recent stock performance has outpaced the Sensex over the past three years, with a return of 86.21% compared to the Sensex's 37.22%, but this does not mitigate the concerns regarding its current valuation.
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Our weekly and monthly stock recommendations are here
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