Is Adhbhut Infra. overvalued or undervalued?

As of 14 July 2023, Adhbhut Infra's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company is currently considered overvalued, with a PE ratio of -19.81, an EV to EBIT of -22.81, and an EV to Sales ratio of 22.81. These ratios highlight the company's negative earnings and capital employed, which are concerning indicators for investors.
When compared to peers, Adhbhut Infra's valuation stands out unfavorably; for instance, Rail Vikas has a PE ratio of 69.76, while Ircon International, which is rated fair, has a PE of 28.25. The stark contrast in these ratios suggests that Adhbhut Infra is not only underperforming relative to its peers but also carries a higher risk profile. Additionally, the company's stock has underperformed the Sensex over the past year, with a return of -40.45% compared to the Sensex's 7.60%, reinforcing the notion of its overvaluation.