Is Vani Commercials overvalued or undervalued?

As of 11 July 2025, the valuation grade for Vani Commercials has moved from fair to attractive, indicating a more favorable outlook for the company. Based on the analysis, Vani Commercials appears to be undervalued. The company's PE ratio stands at 12.08, with a price-to-book value of 0.90 and an EV to EBITDA ratio of 35.78. These ratios suggest that the stock is trading at a lower valuation compared to its earnings and book value.
In comparison to its peers, Vani Commercials has a lower PE ratio than Life Insurance, which is at 12.07, and significantly lower than Bajaj Finance, which is considered very expensive at 34.86. The PEG ratio of Vani Commercials is particularly attractive at 0.15, indicating strong growth potential relative to its price. While the stock has underperformed against the Sensex in the short term, with a YTD return of -20.54% compared to the Sensex's 5.58%, the current valuation metrics suggest that it may present a buying opportunity for investors looking for value in the NBFC sector.