Is Abate As Indust overvalued or undervalued?

Jun 09 2025 03:45 PM IST
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As of November 12, 2024, Abate As Indust is considered a risky investment due to significant financial concerns, including an overvalued status with a PE ratio of -159.18 and a troubling ROCE of -57.00%, especially when compared to peers like MMTC and PTC India.
As of 12 November 2024, the valuation grade for Abate As Indust has moved from does not qualify to risky, indicating significant concerns regarding its financial health. The company is currently assessed as overvalued, particularly given its extreme negative ratios, including a PE ratio of -159.18 and an EV to EBIT of -160.32. Additionally, the ROCE stands at a troubling -57.00%, reflecting poor capital efficiency.

In comparison to its peers, Abate As Indust's valuation metrics starkly contrast with those of MMTC, which has a PE ratio of 119.39, and PTC India, which boasts a very attractive PE of 9.02. These comparisons highlight the substantial overvaluation of Abate As Indust within its industry. Despite a recent stock return of 5% over the past week, which outperformed the Sensex's return of 1.43%, the overall financial indicators suggest that the company is not a sound investment at its current price of 21.21.
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