Is Reliance Home overvalued or undervalued?

As of 4 September 2025, the valuation grade for Reliance Home has moved from risky to attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, especially when compared to its peers in the housing finance sector. Key ratios reveal a PE Ratio of -67.38, an EV to EBITDA of -96.92, and an EV to Sales of 313.06, which highlight the company's challenging financial position.
In comparison to peers, Reliance Home's valuation metrics stand out starkly; for instance, HUDCO has a PE Ratio of 15.46 and an EV to EBITDA of 13.60, while LIC Housing Finance boasts a PE of 5.56 and an EV to EBITDA of 11.16. Despite the negative ratios, the recent stock performance shows that Reliance Home has outperformed the Sensex over the past year with a return of 47.87% compared to the Sensex's -1.98%, reinforcing the notion that the stock may be undervalued relative to its potential.