Is Reliance Home overvalued or undervalued?

As of 29 August 2025, Reliance Home's valuation grade has moved from risky to attractive, indicating a significant improvement in its perceived value. The company appears to be undervalued given its current financial metrics, with a PE ratio of -66.68, an EV to EBITDA of -96.17, and a ROCE of -113.46%. These ratios suggest that while the company is facing challenges, its valuation may not fully reflect its potential recovery.
In comparison to its peers, Reliance Home's valuation stands out. For instance, HUDCO is categorized as very expensive with a PE of 14.73, while LIC Housing Finance and PNB Housing both have attractive valuations with PE ratios of 5.55 and 9.64, respectively. The stark contrast in these ratios highlights Reliance Home's potential upside. Additionally, despite recent stock performance showing a decline of 13.11% over the past week, the company has outperformed the Sensex with a year-to-date return of 17.78%, reinforcing the notion that it may be undervalued in the current market.