Is Jattashankar Ind overvalued or undervalued?

As of 14 August 2024, the valuation grade for Jattashankar Ind has moved from expensive to risky, indicating a significant deterioration in its perceived value. The company is currently considered overvalued, with a PE ratio of -113.19, an EV to EBITDA ratio of -66.28, and a Price to Book Value of 6.14. These ratios suggest that the company is struggling financially, as evidenced by its negative return on equity of -0.43% and negative capital employed.
In comparison to its peers, Jattashankar Ind stands out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 47.51, while Trident maintains a PE of 42.6, both indicating a much healthier valuation. Furthermore, the company's recent stock performance has been exceptional, with a year-to-date return of 79.09% compared to the Sensex's 5.59%, which may not be sustainable given its current financial metrics. Overall, Jattashankar Ind appears to be overvalued in the current market landscape.