Is Shardul Sec. overvalued or undervalued?

As of 10 September 2025, the valuation grade for Shardul Securities has moved from fair to risky, indicating a significant deterioration in its investment appeal. The company is currently assessed as overvalued, particularly highlighted by its PE ratio of -42.42 and an EV to EBITDA ratio of -447.60, which are alarming figures suggesting severe profitability issues. Additionally, the ROCE stands at 6.51% and ROE at 4.68%, both of which are relatively low compared to industry standards.
In comparison to its peers, Shardul Securities is notably underperforming; for instance, Bajaj Finance has a PE ratio of 34.56, while Life Insurance boasts a more favorable EV to EBITDA ratio of 8.85. The stark contrast in these ratios underscores the challenges Shardul Securities faces in the capital markets industry. Despite a recent 1-week stock return of 3.04% compared to the Sensex's 1.06%, the year-to-date performance shows a decline of 41.50%, further reinforcing the notion that the stock is overvalued in its current state.