Is Usha Financial overvalued or undervalued?

As of 18 July 2025, the valuation grade for Usha Financial has moved from attractive to very attractive, indicating a significant positive shift in its perceived value. The company is currently assessed as undervalued, with a PE ratio of 15.87, an EV to EBITDA ratio of 11.97, and a ROCE of 17.48%. In comparison to peers, Usha Financial's PE ratio is notably lower than Bajaj Finance's 35.18 and Bajaj Finserv's 36.56, both categorized as very expensive.
Usha Financial's valuation metrics suggest it is positioned favorably within its industry, particularly against competitors like Life Insurance, which has a PE ratio of 12.08 and is rated fair. The company's recent stock performance has outpaced the Sensex, with a 1-month return of 32.57% compared to the Sensex's 0.63%, further reinforcing the notion of its undervaluation.