Is Octal Credit Cap overvalued or undervalued?

As of 20 June 2025, the valuation grade for Octal Credit Cap has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently assessed as undervalued, with a price-to-earnings (PE) ratio of -10.53, a price-to-book value of 0.53, and an EV to EBITDA ratio of 10.52. These ratios suggest that the company is trading at a significant discount compared to its intrinsic value.
In comparison to its peers, Octal Credit Cap's PE ratio is notably lower than that of Life Insurance, which stands at 12.26, and Bajaj Finance, which is at 33.79. Additionally, while Octal's PEG ratio is 0.00, indicating no growth expectations, it contrasts sharply with the higher valuations of its peers, suggesting that the market may not be fully recognizing its potential. Despite recent underperformance against the Sensex, with a year-to-date return of -45.96% compared to the Sensex's 5.46%, the current valuation metrics indicate that Octal Credit Cap presents an attractive opportunity for investors looking for undervalued stocks in the non-banking financial sector.