Is Advance Syntex overvalued or undervalued?

As of 12 November 2024, Advance Syntex has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial metrics, which reveal significant challenges. Key ratios include a PE ratio of -1.88, an EV to EBITDA of -15.90, and a ROE of -23.91%.
In comparison to its peers, Advance Syntex stands out negatively, especially when juxtaposed with Solar Industries India Ltd., which has a PE ratio of 123.77 and an EV to EBITDA of 76.22, indicating a stark contrast in valuation and performance. Other peers like Godrej Industries Ltd. also demonstrate stronger fundamentals with a PE of 46.63 and an EV to EBITDA of 34.36. The company's recent stock performance has been poor, with a one-year return of -35.5%, significantly lagging behind the Sensex's 7.59% return over the same period, reinforcing the notion of overvaluation.