Is Svaraj Trading overvalued or undervalued?

As of 12 September 2025, Svaraj Trading's valuation grade has moved from risky to very expensive, indicating a significant deterioration in its investment appeal. The company is currently deemed overvalued, with a PE ratio of -13.20, an EV to EBIT of -11.50, and a Price to Book Value of 0.23. These ratios suggest that the company's financial performance is not only underwhelming but also reflects negative earnings, which is concerning for potential investors.
In comparison to its peers, Svaraj Trading stands out unfavorably; for instance, Bajaj Finance has a PE ratio of 35.82 and an EV to EBITDA of 19.41, while Life Insurance boasts a PE of 11.36 and an EV to EBITDA of 8.82, both indicating much stronger valuations. The stark contrast in these ratios highlights Svaraj Trading's poor financial health relative to its competitors in the Non-Banking Financial Company (NBFC) sector. Additionally, the company's stock has underperformed against the Sensex over various time frames, particularly with a year-to-date return of -13.82% compared to the Sensex's 4.82%, reinforcing the notion that Svaraj Trading is currently overvalued.