Is Vani Commercials overvalued or undervalued?

As of 7 July 2025, Vani Commercials has moved from a fair to an attractive valuation grade, indicating a shift in market perception. The company is currently considered undervalued, with a PE ratio of 12.33, a price-to-book value of 0.92, and an EV to EBITDA ratio of 35.96. In comparison to its peers, Life Insurance has a similar PE ratio of 12.35 but an EV to EBITDA of only 9.72, while Bajaj Finance is significantly more expensive with a PE of 34.53 and an EV to EBITDA of 19.35.
Despite the attractive valuation, Vani Commercials has experienced a decline in stock performance compared to the Sensex, with a year-to-date return of -18.92% versus the Sensex's 6.79%. This underperformance, coupled with a low ROCE of 2.48% and ROE of 3.96%, suggests potential challenges ahead, but the current valuation metrics indicate that the stock may be a compelling opportunity for investors looking for value in the NBFC sector.