Is GCM Commodity overvalued or undervalued?

As of 22 August 2025, the valuation grade for GCM Commodity has moved from risky to very expensive. The company appears to be overvalued based on its current financial metrics. Key ratios include a PE Ratio of -0.75, an EV to EBIT of -0.04, and a ROCE of -48.46%. These figures indicate significant financial distress, particularly with negative earnings and returns on capital.
In comparison to its peers, GCM Commodity's valuation stands out unfavorably. For instance, Life Insurance is rated very attractive with a PE of 11.55, while Bajaj Finance is categorized as very expensive with a PE of 31.91. The stark contrast in valuations highlights GCM's poor performance relative to the industry. Additionally, the company's stock has underperformed the Sensex significantly over the past year, with a return of -26.6% compared to the Sensex's 0.31%. This reinforces the conclusion that GCM Commodity is overvalued in its current state.