Is Spandana Sphoort overvalued or undervalued?

As of 31 October 2025, the valuation grade for Spandana Sphoort has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently assessed as overvalued, particularly given its troubling financial ratios, including a PE ratio of -1.26, an EV to EBITDA of -4.99, and a ROE of -39.31%. These figures reflect severe challenges in profitability and valuation, suggesting that the market may be overestimating the company's potential.
In comparison to its peers, Spandana Sphoort's valuation stands out negatively; for instance, Bajaj Finance has a PE ratio of 37.23, while Life Insurance shows a more attractive PE of 11.62. The stark contrast in these ratios underscores the relative weakness of Spandana Sphoort's financial health. Additionally, the company's stock has underperformed significantly against the Sensex, particularly over the past year, where it has declined by 37.13% compared to the Sensex's modest gain of 5.73%. This further reinforces the notion that Spandana Sphoort is currently overvalued in the market.