Is Shreevatsaa Fin. overvalued or undervalued?

As of 11 August 2025, Shreevatsaa Fin. has moved from a fair to a risky valuation grade, indicating a shift towards a more negative outlook. The company is currently considered overvalued, with a PE ratio of 25.92, an EV to EBIT of 25.47, and a ROCE of only 2.44%. In comparison to its peers, Shreevatsaa Fin. stands out with a significantly higher PE ratio than Life Insurance, which is rated very attractive at 11.78, and Bajaj Finance, which is classified as very expensive at 31.31.
The valuation metrics suggest that Shreevatsaa Fin. is not only overvalued compared to its peers but also exhibits weak financial performance with a low ROE of 2.39%. Recent stock performance shows a year-to-date decline of 28.02%, contrasting with a modest 3.15% gain in the Sensex, further reinforcing the notion that the stock may not be a favorable investment at this time.