Is Mukesh Babu Fin. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Mukesh Babu Fin. has moved from expensive to very expensive, indicating a significant shift in its market perception. The company is currently overvalued, with a PE ratio of 24.80, an EV to EBITDA of 59.37, and a Price to Book Value of 0.28. These figures suggest that the stock is trading at a premium compared to its earnings and cash flow potential.
In comparison to its peers, Mukesh Babu Fin. stands out with a higher PE ratio than Bajaj Finance, which has a PE of 38.21, and a much higher EV to EBITDA ratio compared to Life Insurance at 8.94. The company's low ROCE of 1.18% and ROE of 1.26% further emphasize its overvaluation relative to the industry. Additionally, Mukesh Babu Fin.'s stock has underperformed against the Sensex in recent periods, particularly with a year-to-date return of -15.25% compared to the Sensex's 7.44%, reinforcing the notion that the stock is overvalued.