Is Saraswati Commer overvalued or undervalued?

As of 13 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 overvalued, with a PE ratio of 69.51, an EV to EBIT of 52.38, and a ROE of 5.52%. These figures 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 metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 34.18 and an EV to EBITDA of 19.37, while Life Insurance boasts a much lower PE of 11.18 and an EV to EBITDA of 9.22, highlighting the relative overvaluation of Saraswati Commer. Additionally, despite recent strong stock performance with a 1-week return of 12.66% compared to the Sensex's 1.40%, the long-term outlook remains concerning, as the stock has underperformed the Sensex significantly over the past year.