Is Mehta Securities overvalued or undervalued?

Nov 16 2025 08:08 AM IST
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As of November 14, 2025, Mehta Securities is considered overvalued with a PE ratio of 119.16, despite strong past performance, especially when compared to peers like Bajaj Finance and Bajaj Finserv, which have lower PE ratios of 34.62 and 34.07, respectively.
As of 14 November 2025, the valuation grade for Mehta Securities has moved from risky to expensive. This indicates a shift in perception regarding the company's valuation, suggesting that it is now viewed as overvalued. The company is currently assessed as overvalued, with a PE ratio of 119.16, a Price to Book Value of 3.10, and an EV to Sales ratio of 16.63.

In comparison to its peers, Mehta Securities' PE ratio of 15.76 is significantly lower than that of Bajaj Finance at 34.62 and Bajaj Finserv at 34.07, both categorized as expensive. Additionally, Life Insurance stands out with a PE ratio of 11.25, indicating a more attractive valuation in the same industry. Despite the recent strong stock performance over the past three years, with a return of 86.21% compared to the Sensex's 37.22%, the current valuation metrics suggest that Mehta Securities is not justified at its current price level.
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