Is Mahip Industries overvalued or undervalued?

As of 15 October 2025, Mahip Industries has moved from a risky to a does not qualify valuation grade. The company is currently overvalued, as indicated by its negative PE ratio of -1.47, an EV to EBITDA of -8.09, and a ROE of -25.95%. These figures highlight significant financial distress compared to its peers. For instance, JK Paper and West Coast Paper, both classified as attractive, have PE ratios of 19.41 and 12.06, respectively, showcasing a stark contrast in valuation metrics.
The company's financial ratios and performance suggest that it is not only overvalued but also struggling to generate returns, as evidenced by its negative ROCE of -11.30%. While Mahip Industries has shown a stock return of 72.3% over the past five years, this pales in comparison to the Sensex's return of 107.93% in the same period, further reinforcing the notion that the stock is not a sound investment at its current price of 6.22.