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 deterioration in its valuation outlook. The company is currently deemed overvalued. Key ratios include a PE ratio of 24.80, an EV to EBITDA of 59.37, and a Price to Book Value of 0.28, which suggest that the company's earnings and cash flow are being priced at a premium compared to its book value.
In comparison to its peers, Mukesh Babu Fin. stands out with a PE ratio of 24.80, while Bajaj Finance has a much higher PE of 38.21, and Life Insurance, considered very attractive, has a PE of just 11.49. Additionally, the company's ROCE and ROE are notably low at 1.18% and 1.26%, respectively, which further supports the overvaluation narrative. Despite a strong long-term performance with a 10-year return of 269.19%, recent stock performance has lagged behind the Sensex, with a year-to-date decline of 15.25% compared to the Sensex's gain of 7.44%.