Is Sakthi Finance overvalued or undervalued?

As of 12 November 2025, Sakthi Finance has moved from a fair to an attractive valuation grade. The company appears to be undervalued given its current metrics, with a PE ratio of 16.17, an EV to EBIT of 9.17, and a Price to Book Value of 1.19. These ratios suggest that the company is trading at a reasonable price relative to its earnings and book value, especially when compared to peers like Bajaj Finance, which has a significantly higher PE ratio of 34.41, and Life Insurance, which shows a more attractive PE of 11.14.
In comparison to its peers, Sakthi Finance's PEG ratio of 3.44 indicates a more favorable growth outlook relative to its valuation, while Bajaj Finserv's PEG of 2.44 suggests it is overvalued. Additionally, Sakthi Finance's recent stock performance has lagged behind the Sensex, particularly in the year-to-date return, which stands at -29.13% compared to the Sensex's 8.10%. This underperformance, combined with its attractive valuation metrics, reinforces the conclusion that Sakthi Finance is currently undervalued.