Is MSR India overvalued or undervalued?

As of 25 April 2023, the valuation grade for MSR India has moved from does not qualify to risky. The company is currently assessed as overvalued. Key ratios indicate significant financial distress, with a PE ratio of -3.05, an EV to EBIT of -30.12, and a ROE of -52.90%.
In comparison to its peers, MSR India stands out with a notably negative PE ratio, while MMTC, another peer, has a PE ratio of 119.39, highlighting the disparity in valuation. Additionally, PTC India, categorized as very attractive, has a PE ratio of 9.02, further emphasizing MSR India's overvaluation. The company's stock has underperformed significantly against the Sensex, with a year-to-date return of -47.77% compared to the Sensex's 5.63%, reinforcing the conclusion of overvaluation.