Saraswati Commercial Adjusts Valuation Amid Strong Stock Performance in Competitive NBFC Sector

Saraswati Commercial, a small-cap player in the Non-Banking Financial Company (NBFC) sector, has recently undergone a valuation adjustment. The company's financial metrics reveal a PE ratio of 30.93 and an EV to EBITDA ratio of 23.75, indicating its current market positioning. The return on capital employed (ROCE) stands at 7.13%, while the return on equity (ROE) is reported at 5.52%.
In comparison to its peers, Saraswati Commercial's valuation metrics present a more favorable outlook. For instance, Indostar Capital is noted for its significantly higher PE ratio of 94.11, while other competitors like Indus Inf. Trust and Dhani Services exhibit varying valuation levels. Notably, several peers are categorized as very attractive, suggesting a competitive landscape within the NBFC sector.

Saraswati Commercial's stock performance has shown resilience, with a remarkable 90.93% return over the past year, significantly outpacing the Sensex's 5.31% return during the same period. This performance, alongside its recent valuation adjustment, highlights the company's evolving position in the market.