Is Svaraj Trading overvalued or undervalued?

As of 17 October 2025, the valuation grade for Svaraj Trading has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued based on its financial metrics, with a PE ratio of -18.28, an EV to EBIT of -11.28, and a Price to Book Value of 0.22. These ratios suggest that the company is struggling to generate positive earnings and is trading at a substantial discount to its book value.
When comparing Svaraj Trading to its peers, it stands out unfavorably against companies like Bajaj Finance, which has a PE ratio of 38.21, and Life Insurance, with a PE of 11.49. The stark contrast in valuation ratios highlights the challenges Svaraj Trading faces in the market. Additionally, its recent stock performance has been poor, with a year-to-date return of -17.83%, significantly underperforming the Sensex, which has returned 7.44% over the same period. This further reinforces the conclusion that Svaraj Trading is overvalued in its current state.