Is Sai Swami Metals overvalued or undervalued?

As of 6 October 2025, the valuation grade for Sai Swami Metals has moved from very expensive to expensive, indicating a shift in perception regarding its market value. The company appears to be overvalued at this time. Key ratios include a PE ratio of 11.15, an EV to EBITDA of 8.42, and a ROE of 52.18%, which, while strong, do not justify the current valuation when compared to peers.
In comparison, Whirlpool India, which is rated attractive, has a significantly higher PE ratio of 42.37, and IFB Industries, also attractive, shows a PE of 63.55. The disparity in valuation metrics suggests that Sai Swami Metals is priced too high relative to its peers. Additionally, the company's stock has underperformed the Sensex, with a year-to-date return of -28.99% compared to the Sensex's 4.67%, reinforcing the notion that it may be overvalued in the current market environment.