Is Morarka Finance overvalued or undervalued?

As of 30 October 2025, Morarka Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued, with a PE ratio of 23.37, an EV to EBIT of 23.42, and a Price to Book Value of 0.04. These ratios suggest that while the company is not undervalued, it is also not overvalued compared to its peers.
In comparison to its industry peers, Morarka Finance's PE ratio is significantly lower than Bajaj Finance, which stands at 37.56, and also lower than Bajaj Finserv at 35.5. On the other hand, Life Insurance, which is rated very attractive, has a PE ratio of 11.69, indicating that Morarka Finance is positioned in a competitive valuation range within the market. Notably, the company's recent stock performance has lagged behind the Sensex, with a year-to-date decline of 36.98% compared to the Sensex's gain of 8.02%, reinforcing the notion that while the stock is fairly valued, it may face challenges in the near term.