Is Reliance Home overvalued or undervalued?

As of 12 September 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, especially when considering its current price of 4.73 against its 52-week high of 7.84. Key ratios include a PE ratio of -66.26, an EV to EBITDA of -95.72, and a ROCE of -113.46%, which highlight the challenges the company faces in generating profits.
In comparison to its peers, Reliance Home's valuation metrics stand out, particularly when juxtaposed with HUDCO, which has a PE ratio of 15.58, and LIC Housing Finance, which boasts a very attractive PE of 5.67. The stark contrast in these ratios suggests that Reliance Home may be undervalued relative to its competitors. Notably, despite recent stock performance lagging behind the Sensex in the short term, the year-to-date return of 16.79% indicates a positive trend, reinforcing the potential for further appreciation in value.