Is Dhenu Buildcon overvalued or undervalued?

As of 29 July 2024, the valuation grade for Dhenu Buildcon has moved from does not qualify to risky. The company appears to be overvalued based on its financial ratios, with a PE ratio of -9.68, an EV to EBIT of -9.67, and a ROE of -37.50%. These figures indicate significant financial distress and lack of profitability, which are concerning for potential investors.
In comparison to its peers, Dhenu Buildcon's valuation metrics starkly contrast with those of Larsen & Toubro Ltd., which has a PE ratio of 34.21, highlighting the disparity in financial health and market perception. Other peers like Siemens Ltd. and CG Power & Industrial Solutions Ltd. are categorized as very expensive, further emphasizing Dhenu Buildcon's risky position. The company's recent stock performance has also lagged behind the Sensex, with a year-to-date return of -4.6% compared to the Sensex's 5.61%, reinforcing the view that Dhenu Buildcon is currently overvalued.