Is Munoth Fin.Serv. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Munoth Fin.Serv. has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company appears to be overvalued given its negative PE ratio of -35.61, an EV to EBIT of -36.02, and a ROE of -3.78%. These ratios suggest significant financial distress compared to its peers.
In comparison, Bajaj Finance, which is classified as very expensive, has a PE ratio of 35.51, while Life Insurance, deemed very attractive, has a PE ratio of 11.64. This stark contrast highlights Munoth Fin.Serv.'s unfavorable position within the industry. Furthermore, despite recent stock performance showing a 35.98% return over the past month compared to a mere 1.20% for the Sensex, the underlying financial metrics indicate that the company is overvalued in the current market context.