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 EBITDA of 9.52, and a Price to Book Value of 0.69. These figures suggest that the stock is trading at a reasonable price relative to its earnings and book value, especially when compared to peers such as Bajaj Finance, which has a significantly higher PE ratio of 37.67, and Life Insurance, which boasts a much lower EV to EBITDA of 9.18.
Despite the attractive valuation, Muthoot Capital Services has underperformed the Sensex over various time frames, with a year-to-date return of -17.77% compared to the Sensex's 6.81%. This underperformance, coupled with a low ROE of 2.60% and a PEG ratio of 0.00, indicates potential concerns about growth prospects. Overall, Muthoot Capital Services presents a compelling investment opportunity given its current valuation metrics relative to peers in the non-banking financial sector.