Is Sashwat Technoc overvalued or undervalued?

As of 19 August 2025, Sashwat Technoc has moved from a valuation grade of very expensive to risky. The company appears to be overvalued based on its financial ratios, including a negative PE ratio of -7.38, an EV to EBIT of -7.33, and an ROE of -10.45%. In comparison to its peers, Life Insurance, which is rated very attractive, has a PE ratio of 11.61 and an EV to EBITDA of 9.04, indicating a significant disparity in valuation metrics. Given the current valuation metrics and peer comparisons, Sashwat Technoc is overvalued. The company's financial performance, reflected in its negative ratios and low ROCE of -6.98%, suggests underlying issues that may not justify its current price of 240.95. Notably, while the stock has outperformed the Sensex over the past year with a return of 37.65% compared to the Sensex's 1.52%, this may not be sustainable given the concerning financial indicators.