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 considered overvalued, with a PE ratio of 54.94, an EV to EBIT of 41.24, and an ROE of 5.52%. These ratios suggest that the stock is trading at a premium compared to its earnings and book value, raising concerns about its sustainability at current price levels.
In comparison to peers, Bajaj Finance has a PE ratio of 38.09 and an EV to EBITDA of 20.2, while Bajaj Finserv shows a PE of 35.3 and an EV to EBITDA of 13.08, both indicating lower valuations relative to Saraswati Commer. The company's recent stock performance has also been underwhelming, with a year-to-date return of -37.20%, contrasting sharply with the Sensex's positive return of 6.50% over the same period. This further reinforces the notion that Saraswati Commer is overvalued in its current market context.