Is Usha Financial overvalued or undervalued?

As of 10 November 2025, Usha Financial's valuation grade has moved from attractive to very attractive, indicating a significant positive shift in its valuation outlook. The company is currently assessed as undervalued, with a PE ratio of 13.59, an EV to EBIT ratio of 10.59, and an EV to EBITDA ratio of 10.30. These ratios suggest that Usha Financial is trading at a lower valuation compared to its peers.
In comparison to its industry peers, Usha Financial's PE ratio is notably lower than that of Bajaj Finance, which stands at 38.76, and Bajaj Finserv at 35.58, both categorized as very expensive. Additionally, Life Insurance, another peer, is rated very attractive with a PE ratio of 11.14, further reinforcing Usha Financial's favorable valuation position. Despite recent stock performance lagging behind the Sensex, particularly with a year-to-date return of -28.08% compared to the Sensex's 8.16%, the underlying valuation metrics suggest that Usha Financial presents a compelling investment opportunity.