Is Usha Financial overvalued or undervalued?

As of 7 November 2025, Usha Financial's valuation grade has moved from very attractive to attractive, indicating a shift in perception regarding its investment potential. The company is currently assessed as undervalued, particularly when considering its PE ratio of 13.59, EV to EBITDA of 10.30, and ROCE of 8.36%. In comparison to peers, Bajaj Finance is deemed very expensive with a PE ratio of 38.09, while Life Insurance is very attractive with a PE of 11.44, highlighting Usha Financial's relative value in the market.
Despite its current undervaluation, Usha Financial has faced significant stock declines, with a year-to-date return of -28.08%, contrasting sharply with the Sensex's gain of 7.81%. This performance underscores the potential for recovery and growth, especially given its attractive valuation metrics compared to its peers in the non-banking financial company sector.