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 deterioration in its valuation outlook. The company is currently overvalued, with a PE ratio of -9.39, an EV to EBITDA ratio of 25.80, and a Price to Book Value of 4.69. These ratios suggest that the company's financial performance is not just weak but also reflects a troubling trend, especially with a ROCE of -24.82% and ROE of -27.00%.
In comparison to its peers, Minaxi Textiles stands out unfavorably; for instance, K P R Mill Ltd has a PE ratio of 45.61, while Trident is rated fair with a PE of 40.75. This stark contrast highlights the overvaluation of Minaxi Textiles in the garments and apparel industry. Additionally, the company's stock performance has been poor, with a year-to-date return of -15.56% compared to a positive 5.46% return for the Sensex, further reinforcing the notion of overvaluation.