Is E-Land Apparel overvalued or undervalued?

As of 12 November 2024, E-Land Apparel's valuation grade has moved from does not qualify to risky, indicating a shift in its perceived investment quality. The company appears to be undervalued based on its current metrics, with a PE ratio of 7.21, an EV to EBITDA of 8.14, and a PEG ratio of 0.05, which suggests significant potential for growth relative to its price. However, the negative price to book value and negative return on equity raise concerns about its financial health.
In comparison to its peers, E-Land Apparel's PE ratio is significantly lower than that of K P R Mill Ltd, which stands at 47.51 and is classified as very expensive, and Trident, which has a PE of 42.6 and is rated fair. This stark contrast highlights E-Land Apparel's undervaluation relative to its industry. Additionally, the company's strong stock performance, with a year-to-date return of 67.28% compared to the Sensex's 5.58%, reinforces the notion that it may be undervalued, especially given its recent upward trajectory.