Is Muthoot Cap.Serv overvalued or undervalued?

As of 8 October 2025, the valuation grade for Muthoot Capital Services has moved from very attractive to attractive, indicating a shift in market perception. The company is currently assessed as fairly valued. Key ratios include a PE Ratio of 14.90, an EV to EBIT of 10.10, and a Price to Book Value of 0.69, which suggest that while the company is reasonably priced, it does not present a significant discount compared to its intrinsic value.
In comparison to peers, Muthoot Capital Services has a lower PE ratio than Bajaj Finance, which stands at 36.53, and a more favorable EV to EBITDA ratio than Bajaj Finserv at 12.78. Notably, Life Insurance is categorized as very attractive with a PE of 11.6, indicating that Muthoot may still have room for improvement in its valuation metrics. The company's stock has underperformed the Sensex significantly over the past year, with a decline of 26.48% compared to a mere 0.17% increase in the index, reinforcing the notion that it may be fairly valued but not an immediate buy at current levels.