Is Shardul Sec. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Shardul Securities has moved from fair to risky, indicating a significant deterioration in its financial standing. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of -42.50 and an EV to EBITDA ratio of -448.48, which are alarming indicators of financial distress. Additionally, the Price to Book Value stands at 0.64, suggesting that the market values the company less than its book value.
When compared to peers, Shardul Securities is notably worse off; for instance, Bajaj Finance has a PE ratio of 35.51 and a PEG ratio of 2.2, while Life Insurance boasts a PE of 11.64 and a PEG of 0.71. These comparisons highlight the stark contrast in valuation and performance among industry players. Furthermore, Shardul's recent stock performance has been underwhelming, with a year-to-date return of -40.81%, significantly lagging behind the Sensex's 5.74% return. Overall, the combination of poor ratios and negative market sentiment suggests that Shardul Securities is overvalued in the current market landscape.