Is Candour Techtex overvalued or undervalued?

As of 17 November 2025, the valuation grade for Candour Techtex has moved from very expensive to risky, indicating a significant shift in its financial outlook. The company appears to be overvalued, given its troubling financial ratios, including a PE ratio of -107.51, an EV to EBITDA of 132.66, and a ROE of -6.26%. These metrics suggest that the company's earnings are not only negative but also that it is trading at a high valuation relative to its earnings potential.
When compared to peers, Candour Techtex's valuation stands out unfavorably. For instance, Bajaj Steel Industries, categorized as attractive, has a PE ratio of 19.61 and an EV to EBITDA of 12.52, while LMW, considered very expensive, has a PE ratio of 139.43. The stark contrast in these ratios highlights the overvaluation of Candour Techtex. Despite a strong year-to-date return of 39.60% compared to the Sensex's 8.72%, the underlying financial metrics suggest that the stock may not sustain its current price levels in the long term.