Is Daikaffil Chem overvalued or undervalued?

As of 25 April 2023, Daikaffil Chem's valuation grade has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company is currently overvalued, as evidenced by its troubling financial ratios, including a PE ratio of -55.75, an EV to EBITDA of -45.54, and a ROCE of -98.65%. These figures suggest that the company is struggling to generate profits and is facing substantial operational challenges.
In comparison to its peers, Daikaffil Chem's valuation metrics stand out negatively. For instance, Sudarshan Chem is categorized as expensive with a PE ratio of 71.32, while Kiri Industries is also deemed risky with a PE of 13.72. The stark contrast in valuations highlights Daikaffil Chem's precarious financial position. Additionally, despite recent stock performance showing a 5.93% return over the past week, its year-to-date return of -40.00% underscores the challenges it faces relative to the Sensex, which has gained 5.63% in the same period.