Is Sahara overvalued or undervalued?

As of 27 June 2025, the valuation grade for Sahara has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued in the current market context. Key ratios include a PE ratio of 10.44, an EV to EBIT of 7.05, and a Price to Book Value of 0.87, which suggest that while the company is generating some earnings, it is still priced higher than its fundamental value would suggest.
In comparison to its peers, Sahara's PE ratio is significantly lower than that of Altius Telecom, which stands at 54.42, and Embassy Off.REIT at 22.99, both of which are categorized as very expensive. This further reinforces the notion that Sahara is overvalued, especially given its low ROE of 1.99% and ROCE of 4.51%. Additionally, Sahara's stock has underperformed against the Sensex, with a year-to-date decline of 39.27% compared to the Sensex's gain of 7.58%, highlighting the disconnect between market expectations and the company's performance.