Is ECS Biztech overvalued or undervalued?

As of 26 July 2023, ECS Biztech's valuation grade has moved from does not qualify to risky, indicating a shift in its perceived investment quality. The company appears to be overvalued based on its current metrics, particularly with a PE ratio of 16.73 and an EV to EBITDA ratio of 22.03, which are relatively high compared to peers. Notably, Redington Ltd. has a PE ratio of 20 and an EV to EBITDA of 11.59, while Tejas Networks Ltd. boasts a PE of 28.73 and an EV to EBITDA of 12.26, suggesting that ECS Biztech is priced higher despite its lower performance indicators.
Furthermore, ECS Biztech's negative Price to Book Value of -7.06 raises concerns about its asset valuation, and its ROCE of 6.48% does not inspire confidence in its return on capital. The company's stock has underperformed relative to the Sensex, with a year-to-date return of -23.3% compared to the Sensex's 5.61%, reinforcing the notion that it is overvalued in the current market context.