Is Shardul Sec. overvalued or undervalued?

As of 3 September 2025, the valuation grade for Shardul Securities has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company appears to be overvalued, with a PE ratio of -40.76, an EV to EBITDA ratio of -430.19, and a Price to Book Value of 0.61. These ratios suggest that the company is struggling to generate positive earnings and is trading at a low valuation relative to its book value.
In comparison to its peers, Shardul Securities stands out negatively; for instance, Bajaj Finance has a PE ratio of 32.03 and an EV to EBITDA of 18.09, while Life Insurance shows a PE of 11.31 and an EV to EBITDA of 8.77. The stark contrast in these key ratios highlights the challenges faced by Shardul Securities in the capital markets industry. Additionally, the company's recent stock performance has been poor, with a year-to-date return of -43.23%, significantly underperforming the Sensex, which has gained 3.11% in the same period.