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 its perceived value. The company is currently considered undervalued based on its financial metrics. Key ratios include a PE ratio of 13.59, an EV to EBITDA of 10.30, and a Price to Book Value of 0.89, which suggest that the stock is trading below its intrinsic value compared to its earnings and assets. In comparison to peers, Usha Financial's PE ratio of 13.59 is significantly lower than Bajaj Finance's 38.09 and Bajaj Finserv's 35.3, both of which are classified as very expensive. Additionally, Life Insurance, which is very attractive, has a PE ratio of 11.44, further highlighting Usha Financial's relative undervaluation within the industry. Despite recent underperformance, with a year-to-date return of -28.08% compared to the Sensex's 7.81%, the company's fundamentals suggest it may present a buying opportunity for investors looking for value in the Non-Banking Financial Company sector.