Is SKP Securities overvalued or undervalued?

As of 13 November 2025, the valuation grade for SKP Securities has moved from attractive to very attractive, indicating a significant improvement in its perceived value. The company is currently considered undervalued, particularly when compared to its peers in the Non-Banking Financial Company (NBFC) sector. Key ratios supporting this assessment include a PE Ratio of 9.41, an EV to EBITDA of 4.40, and a PEG Ratio of 0.00, which suggests that the stock is trading at a low valuation relative to its earnings growth potential.
In comparison to peers, SKP Securities stands out with a much lower PE Ratio than Bajaj Finance at 34.18 and Life Insurance at 11.18, both of which are categorized as very expensive. Additionally, SKP's EV to EBITDA ratio of 4.40 is significantly lower than the industry average, further reinforcing its undervalued status. Despite a challenging year with a YTD return of -44.12% compared to the Sensex's 8.11%, the long-term performance of SKP Securities, with a 5-year return of 411.83%, highlights its potential for recovery and growth.