Is Svaraj Trading overvalued or undervalued?

As of 3 September 2025, the valuation grade for Svaraj Trading has moved from very expensive to risky, indicating a significant shift in its market perception. The company is currently considered undervalued based on its financial ratios. Notable ratios include a PE ratio of -13.41, an EV to EBIT of -11.71, and a Price to Book Value of 0.23, all of which suggest that the company is trading at a discount relative to its earnings and assets.
When compared to peers, Svaraj Trading's valuation stands out, especially against Bajaj Finance, which has a PE ratio of 32.03, and Life Insurance, which boasts a PE of 11.31. This stark contrast highlights Svaraj's potential undervaluation in the market. Additionally, while the stock has underperformed the Sensex over the longer term, it has shown a slight positive return of 1.45% over the past week, suggesting some recent investor interest. Overall, Svaraj Trading appears to be undervalued in its current market position.