Is Savani Financial overvalued or undervalued?

As of 17 October 2025, Savani Financial's valuation grade has moved from risky to expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its negative PE ratio of -5.64 and EV to EBIT of -4.22, which suggest that the market is pricing in substantial risks that are not being compensated by returns. Additionally, the ROE stands at a concerning -24.37%, highlighting inefficiencies in generating profits relative to shareholder equity.
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 PE of 11.49, both indicating that Savani is lagging significantly behind its competitors. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -21.82%, contrasting sharply with the Sensex's gain of 7.44% during the same period. This combination of negative financial ratios and underperformance relative to the market reinforces the conclusion that Savani Financial is overvalued.