Is Muthoot Cap.Serv overvalued or undervalued?

As of 4 November 2025, Muthoot Capital Services has moved from a fair to an attractive valuation grade. The company is currently considered undervalued, with a PE ratio of 26.35, an EV to EBIT of 9.69, and an EV to EBITDA of 9.52. In comparison to its peers, Bajaj Finance is very expensive with a PE ratio of 37.67, while Life Insurance stands out as very attractive with a PE ratio of 11.76.
Despite recent stock performance lagging behind the Sensex, with a year-to-date return of -17.77% compared to the Sensex's 6.81%, the valuation metrics suggest that Muthoot Capital Services presents a compelling investment opportunity. The company's Price to Book Value stands at 0.69, indicating that it is trading below its book value, further supporting the conclusion that it is undervalued in the current market.