Is MFL India overvalued or undervalued?

As of 25 April 2023, the valuation grade for MFL India has moved from does not qualify to risky, indicating a significant shift in its perceived financial health. The company appears to be undervalued based on its current metrics, despite the negative ratios it presents. Key ratios include a PE ratio of -21.62, an EV to EBITDA of 29.05, and a ROCE of -21.14%.
In comparison to its peers, MFL India stands out with a notably low PE ratio, while competitors like Container Corporation and Aegis Logistics have PE ratios of 37.54 and 48.56, respectively, indicating that MFL India is trading at a discount relative to these firms. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -15.71% compared to the Sensex's 5.60%, reinforcing the notion that MFL India is undervalued in the current market context.