Is Shardul Sec. overvalued or undervalued?

As of 12 September 2025, the valuation grade for Shardul Securities has moved from risky to fair. The company is currently fairly valued despite its unusual financial ratios, with a Price to Earnings (PE) ratio of -42.62, a Price to Book Value of 0.64, and an EV to EBITDA ratio of -449.70. These figures indicate significant volatility and potential challenges in profitability, yet the overall assessment suggests that the stock is not overvalued.
In comparison to its peers, Shardul Securities stands out with a PE ratio significantly lower than that of Bajaj Finance at 35.82 and Life Insurance at 11.36, both of which are categorized as very expensive. The company’s return on equity (ROE) is at 4.68%, which is modest compared to the industry benchmarks. While Shardul Securities has underperformed the Sensex year-to-date with a return of -40.65% against the Sensex's 4.82%, its long-term performance over five years shows a remarkable return of 452.16%, indicating potential for recovery and growth in the future.