Is Alchemist Corp. overvalued or undervalued?
As of November 12, 2024, Alchemist Corp. is classified as "risky" and overvalued, with poor financial ratios such as a PE Ratio of 10.64 and significant underperformance compared to peers, despite a strong 1-year stock return of 44.33%.
As of 12 November 2024, Alchemist Corp. has moved from a grade of "does not qualify" to "risky." The company is currently deemed overvalued based on its financial ratios and peer comparisons. Key ratios include a PE Ratio of 10.64, a Price to Book Value of 0.67, and an EV to EBIT of -11.23, indicating significant financial distress.In comparison to its peers, Alchemist Corp. has a PE Ratio of 5.1453, which is substantially lower than K.P.R. Mill Ltd. at 47.51 and Trident Ltd. at 42.6, both of which are in better valuation categories. The company's ROCE of -1.46% and ROE of 0.88% further highlight its underperformance relative to industry standards. Despite a strong 1-year stock return of 44.33% compared to the Sensex's 7.61%, the overall financial metrics suggest that Alchemist Corp. is not positioned favorably in the market.
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