Is Svaraj Trading overvalued or undervalued?

As of 19 September 2025, Svaraj Trading's valuation grade has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as undervalued based on its low price-to-book ratio of 0.23 and a negative PE ratio of -13.28, which suggests that the market may be undervaluing its potential despite the negative earnings. Additionally, the EV to EBIT and EV to EBITDA ratios stand at -11.58, further highlighting the challenges the company faces in generating positive earnings.
In comparison to its peers, Svaraj Trading's valuation metrics starkly contrast with those of Bajaj Finance, which has a PE ratio of 35.51, and Life Insurance, which boasts a PE ratio of 11.64. This peer comparison emphasizes Svaraj's relative undervaluation within the Non-Banking Financial Company (NBFC) sector. Despite recent stock performance showing a decline of 15.97% year-to-date against a 5.74% gain in the Sensex, the current valuation metrics suggest that Svaraj Trading may present a buying opportunity for investors looking for potential recovery in the future.