Is Stellar Capital overvalued or undervalued?

Aug 27 2025 08:02 AM IST
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As of August 26, 2025, Stellar Capital is fairly valued with a PE ratio of 14.98 and favorable metrics compared to peers like Bajaj Finance and Bajaj Finserv, despite a year-to-date return of -18.7%, it has a one-year return of 12.15%, indicating potential for recovery and growth.
As of 26 August 2025, Stellar Capital's valuation grade has moved from very expensive to fair, indicating a significant adjustment in its market perception. The company is currently fairly valued based on its key financial ratios, including a PE ratio of 14.98, an EV to EBIT of 14.96, and a PEG ratio of 0.13, which suggests strong growth potential relative to its price.

In comparison to its peers, Stellar Capital's valuation metrics are more favorable than those of Bajaj Finance, which has a PE ratio of 31.26, and Bajaj Finserv, with a PE of 32.28. This positions Stellar Capital as a more attractive investment within the Non-Banking Financial Company (NBFC) sector. Notably, while the company has underperformed the Sensex year-to-date with a return of -18.7%, its one-year return of 12.15% contrasts positively against the Sensex's -1.12%, reinforcing its potential for recovery and growth.
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