Is Morarka Finance overvalued or undervalued?

Oct 24 2025 08:12 AM IST
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As of October 23, 2025, Morarka Finance is considered overvalued with a PE ratio of 24.44, an EV to EBIT of 24.51, and a year-to-date return of -34.09%, indicating it is priced higher than its fundamentals and underperforming compared to the Sensex.
As of 23 October 2025, Morarka Finance's valuation grade has moved from fair to expensive. This indicates that the company is currently overvalued. Key ratios highlight this situation, with a PE ratio of 24.44, an EV to EBIT of 24.51, and a Price to Book Value of just 0.04. These figures suggest that the market has priced the stock higher than its underlying fundamentals would justify.

In comparison to its peers, Morarka Finance's PE ratio is significantly lower than Bajaj Finance, which stands at 39.07, and higher than Life Insurance, which has a PE of 11.68. The PEG ratio of Morarka Finance is notably at 0.00, indicating a lack of growth expectations relative to its price. Additionally, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -34.09% compared to the Sensex's 8.21%. This further supports the conclusion that Morarka Finance is overvalued in the current market environment.
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