Is Morarka Finance overvalued or undervalued?

As of 4 November 2025, Morarka Finance has moved from a fair to an expensive valuation grade. The company is currently considered overvalued based on its financial ratios. It has a PE ratio of 23.80, an EV to EBIT of 23.86, and a Price to Book Value of 0.04, which indicates a significant discrepancy in its valuation metrics compared to its peers.
In comparison to its industry, Bajaj Finance is classified as very expensive with a PE ratio of 37.67, while Life Insurance stands out as very attractive with a PE of 11.76. This suggests that Morarka Finance's valuation is not justified given its low return on equity (ROE) and return on capital employed (ROCE), both at 0.17%. Additionally, the company's stock has underperformed against the Sensex over the past year, with a return of -39.45% compared to the Sensex's 5.94%, further reinforcing the notion that Morarka Finance is overvalued at its current price of 98.84.