Is Kanoria Chem. overvalued or undervalued?

As of 9 August 2023, the valuation grade for Kanoria Chemicals has moved from attractive to risky, indicating a significant shift in the company's perceived value. The company appears to be overvalued based on its current financial metrics, with a PE ratio of -7.52, an EV to EBITDA ratio of 31.83, and a Price to Book Value of 0.80. These ratios suggest that the company's earnings are not only negative but also that its valuation is not justified by its operational performance.
In comparison to its peers, Kanoria Chemicals' valuation stands out as particularly unfavorable. For instance, Solar Industries has a PE ratio of 123.77, while Godrej Industries shows a PE of 46.63, both indicating a more robust market position. The significant negative returns for Kanoria Chemicals, particularly a YTD decline of -16.96% compared to the Sensex's 5.63% gain, further reinforces the notion that the company is currently overvalued.