Is Mac Charles(I) overvalued or undervalued?

As of 17 November 2025, the valuation grade for Mac Charles(I) has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, as evidenced by its negative PE ratio of -9.16, an extremely high EV to EBITDA ratio of 127.53, and a Price to Book Value of 8.63. These ratios suggest that the market is pricing the stock at a premium despite its poor financial performance.
In comparison to its peers, Mac Charles(I) shows stark contrasts; for instance, Indian Hotels Co has a PE ratio of 61.02 and an EV to EBITDA of 34.87, while ITC Hotels has a PE ratio of 62.61 and an EV to EBITDA of 35.53. Both peers are valued significantly higher, reflecting their stronger financial metrics. The recent stock performance of Mac Charles(I) has been underwhelming, with a 1-month return of -3.02%, compared to a positive return of 1.19% for the Sensex, reinforcing the notion that the stock may not justify its current valuation.