Is Guj. Lease Fin. overvalued or undervalued?

As of 15 October 2025, the valuation grade for Guj. Lease Fin. has moved from attractive to risky, indicating a significant shift in its financial standing. The company is currently overvalued, as evidenced by its exceptionally high PE ratio of 316.02 and negative price-to-book value of -4.67. Additionally, the EV to EBIT and EV to EBITDA ratios are both at -28.53, further highlighting the company's financial distress.
In comparison to its peers, Guj. Lease Fin. stands out unfavorably. For instance, Bajaj Finance, classified as very expensive, has a PE ratio of 37.84, while Life Insurance, deemed very attractive, has a PE of 11.69. The negative return on capital employed (ROCE) of -6.53% and the negative book value of equity further reinforce the notion that Guj. Lease Fin. is not in a healthy financial position. Despite a strong short-term stock performance, with a 1-week return of 15.92% compared to the Sensex's 1.02%, the long-term outlook remains concerning, as evidenced by a year-to-date decline of -8.63%.