Is Savani Financial overvalued or undervalued?

As of 10 October 2025, the valuation grade for Savani Financial has moved from risky to very expensive, indicating a significant deterioration in its valuation outlook. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of -5.74, an EV to EBIT of -4.32, and a ROE of -24.37%. These figures suggest that the company is not generating adequate returns relative to its equity and is facing substantial operational challenges.
In comparison with peers, Savani Financial's valuation metrics stand out unfavorably. For instance, Bajaj Finance has a PE ratio of 36.56 and an EV to EBITDA of 19.67, while Life Insurance shows a more attractive PE of 11.65 and an EV to EBITDA of 9.08. The stark contrast in these ratios underscores Savani's overvaluation in the current market context. Additionally, Savani Financial has underperformed against the Sensex, with a year-to-date return of -20.45% compared to the Sensex's 5.58%, further reinforcing the notion that the company is not positioned favorably in the market.