Is Laddu Gopal overvalued or undervalued?

As of 25 April 2023, the valuation grade for Laddu Gopal has moved from does not qualify to risky. The company is currently assessed as overvalued. Key ratios include a PE Ratio of 55.56, an EV to EBIT of -40.41, and a ROE of 3.08%. In comparison, peers such as Flair Writing, which is fairly valued, has a PE Ratio of 23.28 and an EV to EBITDA of 14.61, while Doms Industries, categorized as very expensive, has a PE Ratio of 72.62.
The significant disparity in valuation metrics suggests that Laddu Gopal's current price does not align with its financial performance, especially given its negative EV to EBIT and low ROCE of -1.02%. The company's recent stock performance has been lackluster, with a 1-year return of -37.97% compared to a 7.61% return for the Sensex, further reinforcing the notion that it is overvalued in the current market context.