Is Kandagiri Spinng overvalued or undervalued?

As of 25 April 2023, Kandagiri Spinng has moved from a grade of "does not qualify" to "risky." The company is currently overvalued given its negative financial ratios, including a PE ratio of -7.73, an EV to EBIT of -34.64, and a ROCE of -7.10%. These figures indicate significant financial distress compared to its peers. For instance, K P R Mill Ltd is categorized as "very expensive" with a PE ratio of 47.51, while Trident is "fair" with a PE ratio of 42.6, highlighting Kandagiri's unfavorable position in the market.
In comparison to its peers, Kandagiri's valuation metrics are concerning, particularly with an EV to Sales ratio of 13.64, which is substantially higher than the industry average. The company’s recent stock performance has outpaced the Sensex, with a year-to-date return of 26.7% compared to the Sensex's 5.59%, but this does not mitigate the overall valuation concerns. Given these factors, Kandagiri Spinng is deemed overvalued in the current market environment.