Is Aditya Spinners overvalued or undervalued?

As of 13 February 2025, the valuation grade for Aditya Spinners has moved from fair to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, particularly given its troubling metrics, including a PE ratio of -19.67, an EV to EBIT of -44.04, and a ROE of -3.83%. These figures suggest that the company is struggling to generate profits and is facing operational challenges.
In comparison to its peers, Aditya Spinners stands out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 47.51, while Trident maintains a PE of 42.6, both indicating a much stronger valuation profile. The company's current price of 21.25 is significantly below its 52-week high of 33.50, reflecting investor concerns, especially as it has underperformed against the Sensex in various time frames, particularly with a year-to-date return of -20.77% compared to the Sensex's 5.61%.