Is Munoth Fin.Serv. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Munoth Fin.Serv. has moved from expensive to risky, indicating a significant shift in its perceived value. The company appears to be overvalued, given its troubling financial ratios, including a PE ratio of -67.08, an EV to EBIT of -27.24, and a ROE of -3.78%. These figures suggest that the company is struggling to generate profits and may face challenges in sustaining its operations.
In comparison to its peers, Munoth Fin.Serv. stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 37.84, while Life Insurance boasts a more attractive PE of 11.69. The stark contrast in valuation metrics highlights the risk associated with Munoth Fin.Serv. Additionally, the company's recent stock performance has been disappointing, with a year-to-date decline of 23.94%, significantly underperforming the Sensex, which has returned 5.72% during the same period. Overall, the combination of negative financial indicators and poor market performance reinforces the conclusion that Munoth Fin.Serv. is overvalued.