Is Shree Securities overvalued or undervalued?

As of 29 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 appears overvalued based on its current financial metrics, with a PE ratio of 23.14, an EV to EBIT of 22.15, and a Price to Book Value of 2.47. These ratios suggest that the stock is priced higher relative to its earnings and book value compared to its peers.
In comparison to notable competitors, Bajaj Finance has a much higher PE ratio of 31.3, while Life Insurance is valued more attractively with a PE of 11.08. This highlights that Shree Securities is not only overvalued relative to its own historical performance but also when compared to its peers in the Non-Banking Financial Company sector. Additionally, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -19.44% compared to the Sensex's 2.14%, reinforcing the notion that the stock may not be a favorable investment at its current valuation.