Is Vani Commercials overvalued or undervalued?

As of 30 October 2025, the valuation grade for Vani Commercials 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 14.92, which is significantly lower than that of its peer Bajaj Finance at 37.56, and its EV to EBITDA ratio of 30.61, compared to Bajaj Finserv's 35.5. Additionally, Vani's PEG ratio stands at an impressive 0.01, suggesting strong growth potential relative to its valuation.
In terms of performance metrics, Vani Commercials has a ROE of 6.76% and a ROCE of 3.15%, which, while modest, indicate some level of profitability. When compared to peers like Life Insurance, which has a PE ratio of 11.69 and is rated very attractive, Vani's valuation appears more favorable. Recent stock performance shows that Vani has underperformed the Sensex over the past year, with a return of -12.31% compared to the Sensex's 5.58%, reinforcing the notion that the stock may be undervalued in the current market context.