Is Palash Securi. overvalued or undervalued?

As of 10 October 2025, the valuation grade for Palash Securities has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a price-to-earnings (PE) ratio of -10.14, an EV to EBITDA ratio of -9.41, and a price-to-book value of 0.21. These ratios suggest that the company's financial performance is underwhelming, particularly when compared to peers like Bajaj Finance, which has a PE ratio of 36.56, and Life Insurance, with a PE of 11.65.
In the context of its industry, Palash Securities' valuation appears excessive, especially given its negative return on capital employed (ROCE) of -2.53% and return on equity (ROE) of -2.16%. The company's stock has underperformed relative to the Sensex, particularly on a year-to-date basis, where it has declined by 28.34% compared to the Sensex's gain of 5.58%. This further reinforces the conclusion that Palash Securities is currently overvalued in the market.