Is Usha Financial overvalued or undervalued?

As of 4 November 2025, Usha Financial's valuation grade has moved from very attractive to attractive, indicating a shift in market perception. The company appears to be fairly valued at this time. Key ratios include a PE Ratio of 13.55, an EV to EBIT of 10.55, and a Price to Book Value of 0.89, which suggest that while the company is not undervalued, it is also not excessively priced compared to its peers.
In comparison to its industry, Usha Financial's PE Ratio is significantly lower than that of Bajaj Finance, which stands at 37.67, and also lower than Bajaj Finserv at 34.81. Meanwhile, Life Insurance offers a more attractive PE of 11.76, indicating that Usha Financial is positioned in a competitive landscape but is not the cheapest option available. The recent stock performance has lagged behind the Sensex, with a one-year return of -38.86% compared to the Sensex's 6.68%, reinforcing the notion that the stock may be facing challenges despite its current valuation status.