Is Kakatiya Cement overvalued or undervalued?

As of 11 November 2022, Kakatiya Cement's valuation grade has moved from very attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued, with a PE ratio of -9.23, an EV to EBITDA ratio of -3.82, and a Price to Book Value of 0.59. These ratios suggest that the company is struggling financially, particularly with negative earnings reflected in the PE and EV ratios.
In comparison to its peers, Kakatiya Cement stands out negatively; for instance, it has a considerably lower PEG ratio of 0.00 and a much worse EV to EBITDA ratio than typical industry benchmarks. The negative return on equity (ROE) of -6.37% and return on capital employed (ROCE) of -14.25% further highlight the company's challenges. Additionally, while Kakatiya Cement has outperformed the Sensex over the past week and month, its year-to-date and one-year returns of -15.15% and -24.60%, respectively, underscore the ongoing struggles relative to broader market performance.