Is Sadhav Shipping overvalued or undervalued?

As of 9 July 2025, Sadhav Shipping's valuation grade has moved from fair to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at its current price of 110.85, especially considering its PE ratio of 13.54, which is significantly higher than its peer GE Shipping Co, which has a PE of 6.26, and S C I, which is rated very attractive with a PE of 12.42. Additionally, Sadhav's EV to EBITDA stands at 7.13, while GE Shipping Co's is 3.30, further highlighting the disparity in valuation among peers.
Notably, Sadhav Shipping's PEG ratio of 0.48 suggests potential growth, but this is overshadowed by its current overvaluation in comparison to peers. The company's ROCE of 15.70% and ROE of 13.35% are respectable, yet they do not justify the elevated valuation when compared to the industry landscape. Recent stock performance shows that Sadhav has underperformed the Sensex over the past year, with a return of -49.61% compared to the Sensex's 4.27%, reinforcing the notion that the stock may be overvalued at this time.