Is Rajkot Inv.Trust overvalued or undervalued?

As of 23 October 2025, Rajkot Inv.Trust has moved from a fair to an expensive valuation grade, indicating that the stock is currently overvalued. The company's PE ratio stands at 28.30, while its Price to Book Value is 1.08, and the EV to EBIT is notably negative at -22.57, which raises concerns about its profitability relative to its enterprise value.
When compared to peers, Rajkot Inv.Trust's valuation appears less favorable; for instance, Bajaj Finance has a PE ratio of 39.07, while Life Insurance boasts a much lower PE of 11.68, indicating a more attractive valuation. Additionally, the company's recent stock performance has been underwhelming, with a year-to-date return of -20.16%, significantly lagging behind the Sensex's 8.21% return during the same period. Overall, the combination of high valuation ratios and poor relative performance suggests that Rajkot Inv.Trust is overvalued in the current market.