Is Siddha Ventures overvalued or undervalued?

As of 4 September 2025, Siddha Ventures has moved from a risky to a very expensive valuation grade. The company is considered overvalued, given its negative PE ratio of -0.26, an EV to EBITDA of -0.25, and a ROCE of -167.58%. These figures indicate significant financial distress and inefficiency in generating returns relative to its capital employed.
In comparison with peers, Siddha Ventures stands out negatively against Bajaj Finance, which has a PE ratio of 33.36, and Life Insurance, which boasts a PE of 11.41. The stark contrast in valuation metrics highlights the challenges Siddha Ventures faces in the Non-Banking Financial Company (NBFC) sector. Additionally, while the stock has shown a positive return of 2.12% over the past week, it has significantly underperformed the Sensex year-to-date, with a decline of 50.08% compared to the Sensex's 3.30% gain.