Is Evexia Lifecare overvalued or undervalued?

As of 4 July 2024, the valuation grade for Evexia Lifecare has moved from expensive to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a staggering PE ratio of 343.72, an EV to EBIT of 405.58, and an EV to EBITDA of 295.35. These ratios starkly contrast with its peers, such as Castrol India, which has a PE of 22.71, and Gulf Oil Lubricants, boasting a PE of 15.73, highlighting the excessive valuation of Evexia Lifecare.
In comparison to its industry peers, Evexia's financial metrics suggest it is not only overvalued but also underperforming, as evidenced by its low ROCE of 0.26% and ROE of 0.31%. While the stock has shown a modest gain of 8.70% over the past year, it has significantly lagged behind the Sensex's return of 7.62% during the same period, further reinforcing the notion that the stock is not justified at its current price level.