Is Clenon Enterpri overvalued or undervalued?

As of 5 November 2024, the valuation grade for Clenon Enterprises has moved from does not qualify to risky. The company is currently considered overvalued, given its negative PE ratio of -38.57, an EV to EBIT of -45.99, and a ROCE of -1.52%. These ratios indicate significant financial distress compared to its peers. For instance, Havells India Ltd. has a PE ratio of 64.84, while Polycab India Ltd. stands at 45.49, highlighting the stark contrast in valuation metrics within the industry.
In comparison to its peers, Clenon Enterprises exhibits concerning financial health, with a PEG ratio of 0.00 and a negative ROE of -2.46%. The company’s current price of 47.00, while reflecting a recent increase, does not align with the fundamental ratios that suggest it is overvalued in the current market context. Notably, the company's stock has outperformed the Sensex over the past week, returning 4.98% compared to the Sensex's 1.41%, but this short-term performance does not mitigate the overall valuation concerns.