Is Reliance Home overvalued or undervalued?

Sep 01 2025 08:03 AM IST
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As of August 29, 2025, Reliance Home's valuation has improved to attractive despite negative ratios, indicating it is undervalued at a current price of 4.77 compared to its peers, with strong year-to-date returns of 17.78%.
As of 29 August 2025, the valuation grade for Reliance Home has moved from risky to attractive, indicating a significant improvement in its investment appeal. Based on the analysis, the company appears to be undervalued despite its negative ratios, such as a PE ratio of -66.68 and an EV to EBITDA of -96.17. The current price of 4.77 reflects a substantial discount compared to its 52-week high of 7.84.

In comparison to its peers, Reliance Home's valuation metrics are starkly different. For instance, HUDCO is considered very expensive with a PE ratio of 14.73, while LIC Housing Finance, which is also attractive, has a PE of 5.55. The stark contrast in valuation ratios suggests that Reliance Home is undervalued relative to its peers in the housing finance sector. Additionally, the company has shown strong year-to-date returns of 17.78%, outperforming the Sensex, which returned 2.14% in the same period, reinforcing the notion of its undervaluation.
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