Is Savani Financial overvalued or undervalued?

As of 17 October 2025, Savani Financial's valuation grade has moved from risky to expensive, indicating a shift in perception regarding its financial health. The company is currently overvalued, with a PE ratio of -5.64, an EV to EBIT of -4.22, and an EV to EBITDA of -4.36, all of which suggest significant challenges in profitability and operational efficiency.
In comparison to its peers, Savani Financial's valuation metrics are starkly unfavorable; for instance, Bajaj Finance has a PE ratio of 38.21, while Life Insurance boasts a more attractive EV to EBITDA of 8.94. The negative return on equity (ROE) of -24.37% and return on capital employed (ROCE) of -17.14% further underscore the company's struggles relative to its competitors. Notably, Savani Financial has underperformed against the Sensex, with a year-to-date stock return of -21.82% compared to the Sensex's positive return of 7.44%.