Is Sakthi Finance overvalued or undervalued?

As of 5 September 2025, Sakthi Finance's valuation grade has moved from expensive to fair, indicating a more favorable assessment of its market position. The company is currently fairly valued. Key ratios include a PE ratio of 17.05, an EV to EBITDA of 8.90, and a ROE of 7.36%.
In comparison to peers, Bajaj Finance is deemed very expensive with a PE ratio of 33.5, while Life Insurance is very attractive with a PE ratio of 11.39. This positions Sakthi Finance competitively within its industry, particularly as it maintains a reasonable valuation amidst higher-priced competitors. Notably, the company's stock has underperformed relative to the Sensex, with a year-to-date return of -25.29% compared to the Sensex's 3.29%.