Is Purshottam Inves overvalued or undervalued?

As of 30 October 2025, the valuation grade for Purshottam Inves has moved from fair to expensive, indicating a shift towards overvaluation. The company is currently assessed as overvalued, with a PE ratio of 26.36, an EV to EBIT of 12.75, and an EV to EBITDA of 10.21. In comparison to its peers, Bajaj Finance has a significantly higher PE ratio of 37.56, while Life Insurance demonstrates a more attractive valuation with an EV to EBITDA of 9.11.
The company's financial performance metrics, such as a ROCE of 2.98% and ROE of 1.88%, suggest that it is not generating sufficient returns relative to its valuation. Additionally, the recent stock performance shows a decline of 14.68% over the past year, contrasting with the Sensex's return of 5.58%, further reinforcing the notion that Purshottam Inves may be overvalued in the current market environment.