Is Sahaj Fashions overvalued or undervalued?

As of 13 October 2025, the valuation grade for Sahaj Fashions has moved from risky to does not qualify, indicating a significant downgrade in its financial standing. The company appears to be undervalued, with a PE Ratio of 10.86, a Price to Book Value of 0.32, and an EV to EBITDA of 7.54. These ratios suggest that the stock is trading at a low valuation compared to its earnings and book value.
In comparison to its peers, Sahaj Fashions' valuation metrics are considerably lower than those of K P R Mill Ltd, which has a PE Ratio of 41.09, and Trident, with a PE Ratio of 32.93. This stark contrast reinforces the notion that Sahaj Fashions is undervalued within its industry. Additionally, the company's stock has underperformed significantly, with a year-to-date return of -40.65%, while the Sensex has gained 6.69% during the same period, further highlighting the disparity in market performance.