Is Sai Swami Metals overvalued or undervalued?

As of 22 August 2025, the valuation grade for Sai Swami Metals has moved from very expensive to expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 11.69, an EV to EBITDA of 8.79, and a ROE of 52.18%. In comparison, peers such as Whirlpool India have a significantly higher PE Ratio of 46.29 and EV to EBITDA of 25.38, indicating that Sai Swami Metals is trading at a substantial discount relative to its more expensive counterparts.
Despite the high return on capital employed at 45.23%, the company's stock performance has been disappointing, with a year-to-date return of -25.52% compared to a 4.05% gain in the Sensex. This underperformance further supports the conclusion that Sai Swami Metals is overvalued in the current market environment.