Is Shree Securities overvalued or undervalued?

Aug 27 2025 08:04 AM IST
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As of August 26, 2025, Shree Securities is considered very expensive and overvalued with a PE Ratio of 23.14, significantly higher than its peers, despite lower returns on capital and equity, and has underperformed the Sensex with a year-to-date decline of 19.44%.
As of 26 August 2025, the valuation grade for Shree Securities has moved from attractive to very expensive, indicating a significant shift in its market perception. The company is currently considered overvalued. Key ratios include a PE Ratio of 23.14, an EV to EBIT of 22.15, and a Price to Book Value of 2.47, which are elevated compared to industry norms.

In comparison with peers, Shree Securities' PE Ratio is notably higher than Life Insurance, which has a PE of 11.53, and IRFC, which stands at 23.74. This suggests that Shree Securities is trading at a premium relative to its peers, despite its lower ROCE of 6.45% and ROE of 7.05%. Additionally, while the stock has shown a recent positive return of 3.57% over the past week, it has underperformed the Sensex with a year-to-date decline of 19.44%.
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Our weekly and monthly stock recommendations are here
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