Is Shardul Sec. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Shardul Securities has moved from fair to risky. This indicates a significant deterioration in its valuation outlook, suggesting that the company is currently overvalued. Key ratios reveal a troubling picture: the PE ratio stands at -42.50, the EV to EBITDA is an alarming -448.48, and the ROE is only 4.68%. These figures highlight the company's struggles in generating profits relative to its valuation.
In comparison to its peers, Shardul Securities is notably underperforming. For instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts a much healthier EV to EBITDA of 9.07. The stark contrast in these ratios underscores the challenges faced by Shardul Securities in the capital markets industry. Additionally, the company's recent stock performance has been lackluster, with a year-to-date return of -40.81%, compared to a modest 5.74% return for the Sensex, reinforcing the notion that Shardul Securities is overvalued in its current state.