Is Savani Financial overvalued or undervalued?

As of 23 October 2025, the valuation grade for Savani Financial has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued. Key ratios reveal concerning performance, with a PE Ratio of -5.66, an EV to EBIT of -4.23, and a ROE of -24.37%. These figures suggest that the company is struggling to generate profits relative to its equity and overall valuation metrics.
In comparison to its peers, Savani Financial's ratios starkly contrast with those of Bajaj Finance, which has a PE Ratio of 39.07, and Life Insurance, boasting a PE Ratio of 11.68. This disparity highlights Savani's underperformance in the market. Additionally, the company's recent stock performance has lagged behind the Sensex, particularly over the past year, where it has declined by 8.78% compared to the Sensex's gain of 5.59%. Overall, these indicators strongly suggest that Savani Financial is overvalued in its current state.