Is Stanrose Mafat. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Stanrose Mafat. has moved from very expensive to risky. The company is currently assessed as undervalued, given its negative PE ratio of -14.04, an EV to EBITDA of -0.85, and a Price to Book Value of 0.67. These figures suggest that the market may not be fully recognizing the company's potential, especially when compared to peers like Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, with a PE ratio of 11.64.
In addition to the headline ratios, Stanrose Mafat. shows a ROCE of -14.61% and a ROE of -5.31%, indicating significant challenges in generating returns. Despite the company's struggles, its valuation appears attractive relative to peers in the Non-Banking Financial Company (NBFC) sector. The recent stock performance has been underwhelming, with a year-to-date return of -12.94%, contrasting with the Sensex's positive return of 5.74%, further supporting the notion that the stock may be undervalued in the current market context.