Is Hexa Tradex overvalued or undervalued?

As of 1 February 2025, the valuation grade for Hexa Tradex has moved from very expensive to risky. The company is currently assessed as overvalued, given its significant negative PE ratio of -43.09, an EV to EBIT of -249.77, and an EV to Sales ratio of 236.62. These ratios indicate severe financial distress and inefficiency in generating profits relative to its enterprise value.
In comparison to peers, Hexa Tradex's valuation metrics stand out unfavorably; for instance, MMTC has a PE ratio of 119.39, while Optiemus Infra is valued fairly with a PE of 82.35. The stark contrast in these ratios highlights Hexa Tradex's overvaluation in the current market context. Additionally, while the stock has outperformed the Sensex in the short term, with a 1-week return of 3.35% compared to the Sensex's 1.41%, its year-to-date performance shows a decline of -31.84%, further reinforcing the notion that it is overvalued relative to its financial fundamentals.