Is Swaraj Suiting overvalued or undervalued?

As of 1 October 2025, Swaraj Suiting's valuation grade has moved from expensive to very expensive. The company is currently considered overvalued. Key ratios include a PE Ratio of 10.96, an EV to EBITDA of 8.42, and a ROE of 21.84%.
In comparison to its peers, K P R Mill Ltd has a significantly higher PE Ratio of 43.71, while Vardhman Textile, which is categorized as fair, has a PE Ratio of 13.96. The stark contrast in valuations suggests that Swaraj Suiting is not only overvalued relative to its own metrics but also when compared to its industry peers. Additionally, the company's recent stock performance has underperformed the Sensex, with a year-to-date return of -25.95% compared to the Sensex's 5.04%, further reinforcing the overvaluation narrative.