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 market perception. The company is currently deemed undervalued, with a price-to-earnings (PE) ratio of -13.28, a price-to-book value of 0.23, and an EV to EBIT ratio of -11.58. These ratios suggest that the company's stock may be trading at a discount compared to its intrinsic value, despite the negative earnings.
In comparison to its peers, Svaraj Trading's valuation metrics stand out. For instance, Bajaj Finance has a PE ratio of 35.51 and an EV to EBITDA of 19.31, while Life Insurance boasts a PE of 11.64 and an EV to EBITDA of 9.07. This stark contrast highlights Svaraj Trading's relative undervaluation in the market. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -15.97% compared to the Sensex's 5.74%, further reinforcing the notion that the stock may be undervalued in the current market environment.