Is Usha Financial overvalued or undervalued?

Jul 20 2025 08:02 AM IST
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As of July 18, 2025, Usha Financial is considered very attractive and undervalued, with a PE Ratio of 15.87, an EV to EBITDA of 11.97, and a ROCE of 17.48%, significantly lower than its peers like Bajaj Finance and Bajaj Finserv, while also outperforming the Sensex with a 1-month return of 32.57%.
As of 18 July 2025, the valuation grade for Usha Financial has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently assessed as undervalued. Key ratios supporting this conclusion include a PE Ratio of 15.87, an EV to EBITDA of 11.97, and a ROCE of 17.48%.

In comparison with peers, Usha Financial's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 35.18, and Bajaj Finserv at 36.56. This suggests that Usha Financial offers a more favorable valuation relative to its competitors. Additionally, 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 undervaluation narrative.
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