Is Sakthi Finance overvalued or undervalued?

Jun 30 2025 08:01 AM IST
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As of June 27, 2025, Sakthi Finance is considered overvalued with a PE ratio of 19.85 and a year-to-date return of -14.20%, contrasting with the Sensex's gain of 7.58%, indicating that investors may be paying a premium relative to its earnings and growth potential.
As of 27 June 2025, Sakthi Finance has moved from a fair to an expensive valuation grade. The company is currently overvalued based on its financial ratios, with a PE ratio of 19.85, a Price to Book Value of 1.44, and an EV to EBITDA of 9.32. When compared to peers, Life Insurance has a PE ratio of 12.53, indicating a more attractive valuation, while Bajaj Finance is classified as very expensive with a PE of 35.35.

Despite a recent uptick in stock price, Sakthi Finance's year-to-date return of -14.20% contrasts sharply with the Sensex's gain of 7.58%, reinforcing the notion that the stock may be overvalued. Overall, the valuation metrics suggest that investors may be paying a premium for Sakthi Finance relative to its earnings and growth potential.
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