Is Morarka Finance overvalued or undervalued?

As of 13 November 2025, the valuation grade for Morarka Finance has moved from expensive to fair, indicating a more favorable assessment of its market position. The company appears to be fairly valued at this time. Key ratios include a PE ratio of 23.47, an EV to EBIT of 23.82, and a Price to Book Value of 0.41, which suggest that while the company is not undervalued, it is also not excessively priced compared to its earnings potential.
In comparison to its peers, Morarka Finance's PE ratio is significantly lower than that of Bajaj Finance, which stands at 34.18, indicating that Morarka may offer better value relative to its earnings. Additionally, its EV to EBITDA ratio is comparable to I R F C, which has a ratio of 20.53, further supporting the notion that Morarka Finance is fairly valued within its sector. Notably, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -36.70% compared to the Sensex's 8.11%, highlighting potential concerns about its growth prospects.