Is Saraswati Commer overvalued or undervalued?

As of 5 September 2025, the valuation grade for Saraswati Commer has moved from expensive to fair. The company is currently fairly valued, with a PE ratio of 58.02, an EV to EBIT ratio of 43.52, and a ROE of 5.52%. In comparison, Bajaj Finance is considered very expensive with a PE ratio of 33.5, while Life Insurance is rated very attractive with a PE of 11.39, highlighting the relative valuation landscape in the Non-Banking Financial Company (NBFC) sector.
Despite the recent decline in stock price, with a year-to-date return of -33.68% compared to the Sensex's 3.29%, the valuation metrics suggest that Saraswati Commer is positioned fairly within its peer group. The PEG ratio stands at 0.00, indicating potential for growth, although the current ratios reflect a cautious outlook in the market. Overall, the company's valuation appears justified given the current financial ratios and peer comparisons.