Is Shardul Sec. overvalued or undervalued?

As of 10 October 2025, Shardul Securities has moved from a grade of risky to fair. The company is currently fairly valued despite its unusual financial metrics, including a PE ratio of -40.77 and an EV to EBITDA of -430.28. The price to book value stands at 0.61, indicating that the stock is trading below its book value, which may suggest potential undervaluation in certain contexts.
In comparison to its peers, Shardul Securities shows a stark contrast with Bajaj Finance, which is considered very expensive with a PE ratio of 36.56, and Life Insurance, which is very attractive with a PE of 11.65. The company's return metrics have been underwhelming, particularly with a year-to-date decline of 43.22%, compared to a modest 5.58% gain in the Sensex. Overall, while the valuation is fair, the negative ratios and performance metrics suggest caution for potential investors.