Is Stellar Capital overvalued or undervalued?

As of 29 August 2025, Stellar Capital's valuation grade has moved from very expensive to fair, indicating a significant improvement in its perceived value. The company is currently assessed as fairly valued. Key ratios include a PE ratio of 17.22, an EV to EBIT of 17.21, and a PEG ratio of 0.15, which suggests that the stock may be undervalued relative to its growth potential.
In comparison to its peers, Stellar Capital's PE ratio is notably lower than Bajaj Finance, which is rated as very expensive with a PE of 31.3, and higher than Life Insurance, which is very attractive at a PE of 11.08. This positions Stellar Capital competitively within the Non-Banking Financial Company (NBFC) sector. Additionally, the company's recent stock performance has outpaced the Sensex, with a 1-year return of 28.97% compared to the Sensex's decline of 2.83%, reinforcing the notion that Stellar Capital is a compelling investment opportunity at its current valuation.