Is Bacil Pharma overvalued or undervalued?

As of 17 November 2023, Bacil Pharma's valuation grade has moved from does not qualify to risky, indicating a shift in its perceived financial health. The company appears to be overvalued given its current metrics, particularly with a PE ratio of 24.47, a Price to Book Value of 14.48, and a troubling ROCE of -13.29%. These figures suggest that the stock may not be justified at its current price level.
In comparison to its peers, Bacil Pharma's valuation stands out unfavorably; for instance, MMTC has a PE ratio of 119.39, while PTC India, which is rated very attractive, has a significantly lower PE of 9.02. The PEG ratio for Bacil Pharma is notably low at 0.03, which could indicate potential growth, but the negative EV to EBIT and EV to EBITDA ratios of -24.51 raise serious concerns about profitability. Despite a strong one-year stock return of 70.54%, the year-to-date performance shows a decline of 27.35%, contrasting sharply with the Sensex's positive return of 5.63% in the same period, reinforcing the notion that Bacil Pharma may be overvalued.