Is Sahaj Fashions overvalued or undervalued?

As of 6 October 2025, Sahaj Fashions' valuation grade has moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company appears to be undervalued, given its low PE ratio of 10.86, a price-to-book value of 0.32, and an EV to EBITDA ratio of 7.54. These metrics suggest that the stock is trading at a significant discount compared to its earnings and book value.
In comparison to its peers, Sahaj Fashions' PE ratio is notably lower than K P R Mill Ltd, which has a PE of 44.15, and Trident, which stands at 33.21. Additionally, Vardhman Textile, classified as attractive, has a PE of 13.72, further highlighting the undervaluation of Sahaj Fashions. The company's recent stock performance has been poor, with a year-to-date decline of 40.65%, contrasting sharply with the Sensex's gain of 6.06% during the same period, reinforcing the notion that the stock may be undervalued relative to its peers and market conditions.