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, particularly highlighted by its PE ratio of -42.50 and an EV to EBITDA ratio of -448.48, which are alarming indicators of financial distress. Additionally, the ROCE stands at a mere 6.51%, and the ROE is low at 4.68%, suggesting inefficient use of capital.
In comparison to its peers, Shardul Securities is struggling significantly. For instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts a PE of 11.64, both of which reflect a much healthier valuation environment. The stark contrast in these ratios underlines Shardul's precarious position in the capital markets industry. Furthermore, while Shardul has experienced a 40.81% decline year-to-date, the Sensex has gained 5.74%, reinforcing the notion that the stock is underperforming relative to the broader market.