Is Shardul Sec. overvalued or undervalued?

As of 4 September 2025, the valuation grade for Shardul Securities has moved from risky to fair, indicating an improvement in its perceived investment quality. The company is currently fairly valued, with a PE ratio of -42.75, an EV to EBITDA of -451.10, and a Price to Book Value of 0.64. These ratios suggest that while the company is not generating positive earnings, it is trading at a low price relative to its book value, which could indicate potential value for investors.
In comparison to its peers, Shardul Securities stands out with its low Price to Book Value, especially against Bajaj Finance, which has a PE ratio of 33.36, and Life Insurance, which has an EV to EBITDA of 8.87. Despite its current fair valuation, Shardul has underperformed in the short term, with a year-to-date return of -40.46%, contrasting sharply with the Sensex's positive return of 3.30% during the same period. This performance highlights the volatility and potential risks associated with investing in Shardul Securities, even as it shows signs of stabilization in its valuation.