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 shift in its perceived value. The company is currently fairly valued based on its financial metrics. 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 valuation stands out, particularly against Bajaj Finance, which is rated as very expensive with a PE of 31.3, and Life Insurance, which is very attractive with a PE of 11.08. This positions Stellar Capital favorably within the Non-Banking Financial Company (NBFC) sector. Notably, the company's stock has outperformed the Sensex over the past year, with a return of 28.97% compared to the Sensex's decline of 2.83%, reinforcing the notion that it may be undervalued in the current market context.