Is ASL Industries overvalued or undervalued?

As of 2 June 2025, ASL Industries has moved from a grade of "does not qualify" to "risky." The company is currently overvalued based on its financial ratios. The PE ratio stands at an elevated 48.28, while the Price to Book Value is 1.38. Notably, both the EV to EBIT and EV to EBITDA ratios are negative at -48.32, indicating significant operational challenges.
In comparison to its peers, ASL Industries' valuation appears concerning. For instance, Samvardhana Motherson International Ltd. has a more attractive PE ratio of 29.14, while Endurance Technologies Ltd. shows a fair valuation with a PE of 42.27. The company's recent stock performance has been mixed, with a year-to-date return of 41.1%, significantly outpacing the Sensex's 6.22%, but it has underperformed over the past year with a decline of 16.86%. This suggests that despite short-term gains, the long-term outlook may not justify the current valuation.