Is COSCO (India) overvalued or undervalued?

As of 21 October 2024, COSCO (India) has moved from a fair to an attractive valuation grade. The company is currently considered overvalued based on its high PE ratio of 108.19, significantly exceeding peers such as Bhartiya International with a PE of 61.23 and Lehar Footwears at 40.42. Additionally, COSCO's EV to EBITDA stands at 21.05, which is higher than the industry average, indicating a premium valuation compared to its peers.
In terms of financial performance, COSCO's ROCE is at 4.93% and ROE at 1.55%, both of which are relatively low, suggesting inefficiencies in generating returns on capital and equity. The company has underperformed against the Sensex over the past year, with a stock return of -18.13% compared to the Sensex's 7.65%. Given these factors, COSCO (India) appears to be overvalued despite its attractive grade change.