Is Motor & Gen Fin overvalued or undervalued?

As of 14 November 2025, the valuation grade for Motor & Gen Fin has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 66.50, a Price to Book Value of 1.31, and an EV to Sales ratio of 14.52. Notably, its ROE stands at 1.98%, while the ROCE is negative at -2.42%, indicating challenges in generating returns on capital.
In comparison to peers, Motor & Gen Fin's valuation metrics are significantly higher than those of Life Insurance, which has a PE ratio of 11.25 and an EV to EBITDA of 9.29, highlighting that Motor & Gen Fin is relatively more expensive. Additionally, Bajaj Finance is categorized as very expensive with a PE of 34.62, further emphasizing the disparity in valuation within the sector. Despite a recent underperformance compared to the Sensex, where the company has seen a YTD decline of 13.55% against the Sensex's gain of 8.22%, the current valuation suggests that the stock is aligned with its fair value.