Is Saakshi Medtech overvalued or undervalued?

As of 30 June 2025, the valuation grade for Saakshi Medtech has moved from very expensive to expensive, indicating a slight improvement in its valuation perception. However, the company remains overvalued based on its current financial metrics. The price-to-earnings (PE) ratio stands at 65.90, significantly higher than its peers, with Adani Enterprises at 73.23 and 3M India at 52.64. Additionally, the EV to EBITDA ratio is 30.35, which is also elevated compared to the industry standards.
In comparison to its peers, Saakshi Medtech's financial ratios suggest it is overvalued, especially when considering its return on equity (ROE) of only 5.05% and return on capital employed (ROCE) of 6.70%. The company's stock has underperformed over the past year, with a return of -38.98% compared to the Sensex's 6.27%, reinforcing the notion that it is currently overvalued in the market.