Is Swati Projects overvalued or undervalued?

As of 8 August 2025, the valuation grade for Swati Projects has moved from fair to risky, indicating a significant deterioration in its financial standing. The company is currently overvalued, as evidenced by its troubling PE ratio of -32.27 and an EV to EBITDA ratio of -33.35, both of which suggest negative earnings performance. Additionally, the Price to Book Value stands at 2.65, further highlighting the disconnect between market valuation and actual financial health.
In comparison to its peers, Swati Projects lags significantly behind, with Life Insurance showing a PE ratio of 11.83 and an EV to EBITDA of 9.24, both categorized as very attractive. Other competitors like Bajaj Finance and Bajaj Finserv are deemed very expensive with PE ratios of 31.31 and 32.16, respectively. The company's recent stock performance has been dismal, with a year-to-date return of -47.88%, starkly contrasting with the Sensex's modest gain of 2.20%. This further reinforces the view that Swati Projects is not only overvalued but also struggling to align its market price with its underlying financial realities.