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. Based on the analysis, the company appears to be overvalued given its negative PE ratio of -35.61 and EV to EBIT of -36.02, which suggest significant operational challenges. The ROCE stands at -2.64%, further highlighting inefficiencies in generating returns on capital.
In comparison to its peers, Munoth Fin.Serv. significantly lags behind, with Bajaj Finance showing a PE ratio of 35.51 and Life Insurance at 11.64, both indicating a much stronger valuation position. The company's current price of 69.35 reflects a market sentiment that may not align with its underlying financial performance, especially when juxtaposed with its peers. Additionally, while the stock has outperformed the Sensex over the past week and month, the longer-term returns indicate a concerning trend that suggests caution for potential investors.