Is Lypsa Gems overvalued or undervalued?

As of 16 August 2023, the valuation grade for Lypsa Gems has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios reflect this assessment, with a PE ratio of -1.81, an EV to EBITDA of -1.80, and a ROCE of -103.99%. These figures suggest severe financial distress and a lack of profitability.
In comparison to its peers, Lypsa Gems stands out negatively; for instance, Titan Company has a PE ratio of 94.61 and a fair valuation, while Kalyan Jewellers is deemed expensive with a PE of 81.3. The stark contrast in these ratios highlights the challenges Lypsa Gems faces within its industry. Additionally, while the stock has outperformed the Sensex over the past year with a return of 57.37% compared to the Sensex's 7.65%, the underlying financial metrics raise concerns about its sustainability.