Is MIRC Electronics overvalued or undervalued?

As of 28 July 2025, MIRC Electronics' valuation grade has moved from very expensive to expensive, indicating a slight improvement in its perceived value. However, the company remains overvalued. Key ratios highlight this situation: the PE ratio stands at an alarming -198.75, the EV to EBITDA ratio is at 68.74, and the Price to Book Value is 3.50. These figures suggest significant financial distress, particularly with a negative ROCE of -15.52% and a negative ROE of -1.76%.
When compared to peers, MIRC Electronics shows stark contrasts; for instance, V-Guard Industries has a PE ratio of 53.76 and an EV to EBITDA of 32.97, while Bata India boasts a PE of 66.52 and an EV to EBITDA of 21.98. These comparisons further emphasize MIRC's overvaluation in the current market context. Additionally, the company's recent stock performance has lagged behind the Sensex, with a year-to-date return of -32.08% compared to the Sensex's 3.52%, reinforcing the notion that MIRC Electronics is not a favorable investment at this time.