Is Reliance Home overvalued or undervalued?

As of 12 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. Notable ratios include a PE ratio of -66.26, an EV to EBITDA of -95.72, and a PEG ratio of 0.00, which suggest that the company is trading at a substantial discount relative to its earnings potential.
In comparison to its peers, Reliance Home's valuation metrics stand out. For instance, HUDCO is deemed expensive with a PE ratio of 15.58, while LIC Housing Finance is classified as very attractive with a PE of 5.67. This stark contrast highlights the undervaluation of Reliance Home. Additionally, the company's stock has performed well over the past year, returning 31.39%, significantly outperforming the Sensex, which declined by 1.28% in the same period. This performance, coupled with the attractive valuation grade, reinforces the conclusion that Reliance Home is undervalued in the current market.