Is Minaxi Textiles overvalued or undervalued?

As of 20 June 2025, the valuation grade for Minaxi Textiles has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently assessed as overvalued, with a PE ratio of -9.39, an EV to EBIT of 25.80, and a Price to Book Value of 4.69. These ratios suggest that the company's financial metrics are not only unfavorable but also highlight a concerning trend in profitability, as evidenced by a ROCE of -24.82% and ROE of -27.00%.
In comparison to its peers, Minaxi Textiles stands out unfavorably against K P R Mill Ltd, which has a PE ratio of 45.61 and an EV to EBITDA of 29.75, and Trident, which is rated fair with a PE of 40.75 and an EV to EBITDA of 17.61. The stark contrast in valuation metrics emphasizes the overvaluation of Minaxi Textiles within the garments and apparel industry. Additionally, the company's recent stock performance has lagged significantly behind the Sensex, with a year-to-date return of -15.56% compared to the Sensex's 5.46%, further reinforcing the conclusion of overvaluation.