Is SHRI NIWAS L& F. overvalued or undervalued?

As of 10 June 2025, the valuation grade for SHRI NIWAS L& F. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered undervalued based on its low PE ratio of 4.44 and a PEG ratio of 0.00, which suggests that the stock may be trading at a discount relative to its earnings growth potential. However, the EV to EBITDA ratio stands at an extremely high 1167.73, raising concerns about its operational efficiency and valuation relative to earnings.
In comparison to its peers, SHRI NIWAS L& F. has a PE ratio significantly lower than Life Insurance, which is at 12.4, and IRFC, which is at 29.19, both categorized as fair. This stark contrast highlights the potential undervaluation of SHRI NIWAS L& F. despite its risky classification. Additionally, the company's stock has underperformed against the Sensex over the long term, with a 10-year return of -71.57% compared to the Sensex's 206.97%, further emphasizing the challenges it faces in recovering investor confidence.