Is Morarka Finance overvalued or undervalued?

As of 15 October 2025, the valuation grade for Morarka Finance has moved from very expensive to expensive. The company is currently considered overvalued based on its financial metrics. Key ratios include a PE ratio of 24.65, an EV to EBIT of 25.05, and a Price to Book Value of 0.48, which suggests that the stock is trading at a premium compared to its book value.
In comparison to its peers, Morarka Finance's PE ratio is significantly lower than that of Bajaj Finance, which stands at 37.84, and higher than Life Insurance, which has a PE of 11.69. The PEG ratio of Morarka Finance is notably at 0.00, indicating a lack of growth expectations compared to its price. Recent stock performance shows that Morarka Finance has underperformed the Sensex over the year, with a return of -36.00% compared to the Sensex's 0.96%, reinforcing the view that the stock may be overvalued in the current market context.