Is Saraswati Commer overvalued or undervalued?

As of 7 November 2025, the valuation grade for Saraswati Commer has moved from fair to expensive, indicating a shift in perception regarding its market value. The company is currently deemed overvalued based on its high PE ratio of 54.94, an EV to EBIT of 41.24, and a Price to Book Value of 1.39. These ratios suggest that the stock is trading at a premium compared to its earnings and book value.
In comparison to its peers, Saraswati Commer's valuation stands out. For instance, Bajaj Finserv has a PE ratio of 35.3 and an EV to EBITDA of 13.08, while Life Insurance boasts a more attractive PE of 11.44 and an EV to EBITDA of just 0.37. The significant disparity in these ratios reinforces the conclusion that Saraswati Commer is overvalued. Additionally, while the stock has performed well over the long term, its year-to-date return of -37.20% starkly contrasts with the Sensex's positive return of 6.50%, further highlighting potential concerns regarding its current valuation.