Is Coromandel Engg. overvalued or undervalued?

As of 16 October 2024, Coromandel Engineering's valuation grade has moved from does not qualify 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 -86.36, an EV to EBITDA of -238.10, and a ROE of -233.03%. These figures raise concerns about the company's profitability and operational efficiency.
In comparison to its peers, Coromandel's valuation metrics starkly contrast with those of Larsen & Toubro, which has a PE ratio of 34.21 and an EV to EBITDA of 17.35, highlighting the latter's more favorable financial position. Other peers like Siemens and CG Power & Industries also exhibit significantly higher valuations, reinforcing the notion that Coromandel is not only underperforming but also overvalued in its current state. Additionally, while Coromandel's stock has shown a remarkable 238.47% return over the past five years, its recent performance has lagged behind the Sensex, with a 1-week decline of 10.93%, suggesting potential volatility ahead.