Is Saraswati Commer overvalued or undervalued?

As of 7 November 2025, the valuation grade for Saraswati Commer has moved from fair to expensive. The company is currently overvalued based on its financial metrics. Key ratios indicate a high price-to-earnings (PE) ratio of 54.94, an EV to EBIT of 41.24, and a return on equity (ROE) of only 5.52%.
In comparison to its peers, Saraswati Commer's PE ratio significantly exceeds that of Bajaj Finance at 38.09 and Bajaj Finserv at 35.3, both of which are also classified as expensive. Additionally, the company's PEG ratio stands at 0.00, suggesting that it may not be generating growth relative to its price. While the stock has outperformed the Sensex over the long term, its recent performance shows a decline of 44.29% over the past year, further supporting the conclusion that it is overvalued at its current price of 12,312.00.