Is Alok Industries overvalued or undervalued?

As of 20 February 2020, Alok Industries has moved from a grade of does not qualify to risky. The company is currently overvalued based on its financial ratios, which include a PE Ratio of -10.55, an EV to EBITDA of -397.07, and a Price to Book Value of -0.47. These negative ratios indicate significant financial distress and an inability to generate positive earnings or value.
In comparison to its peers, Alok Industries stands out with a notably lower PE ratio than K P R Mill Ltd, which has a PE of 47.51, and Trident, which has a PE of 42.6. The company’s valuation metrics suggest it is not only struggling compared to its competitors but also reflects a concerning financial position. Additionally, Alok Industries has underperformed against the Sensex, with a year-to-date return of -6.89% compared to the Sensex's 5.59%.