Is Munoth Fin.Serv. overvalued or undervalued?

As of 23 October 2025, the valuation grade for Munoth Fin.Serv. has moved from expensive to risky, indicating a significant deterioration in its valuation outlook. The company is currently assessed as overvalued, particularly given its negative PE ratio of -67.29 and EV to EBIT and EV to EBITDA ratios both at -27.32. Additionally, the return on capital employed (ROCE) and return on equity (ROE) are notably poor at -2.64% and -3.78%, respectively.
In comparison to its peers, Munoth Fin.Serv. stands out unfavorably against Bajaj Finance, which has a PE ratio of 39.07, and Life Insurance, which boasts a much more attractive PE of 11.68. The company's current price of 52.41 reflects a troubling trend, as it has underperformed the Sensex over the past month and year, with returns of -24.43% and -14.6%, respectively. This performance, combined with its negative financial ratios, reinforces the conclusion that Munoth Fin.Serv. is overvalued in the current market context.