Is N D Metal Inds. overvalued or undervalued?

As of 12 November 2024, the valuation grade for N D Metal Inds. has moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company is currently assessed as overvalued. Key ratios reveal a PE Ratio of 22.81, a Price to Book Value of 5.92, and an EV to EBITDA of -23.29, which are concerning indicators of its financial health and valuation. In comparison to its peers, N D Metal Inds. has a higher PE Ratio than Hindustan Zinc Ltd. at 20.37 and Vedanta Ltd. at 12.87, both of which are considered more attractively valued. Additionally, the company's ROCE stands at -15.46%, significantly lower than the industry average, further supporting the overvaluation assessment. Notably, N D Metal Inds. has underperformed against the Sensex with a 1-year return of -16.24% compared to the Sensex's 7.57%, reinforcing the notion that the stock may not be a favorable investment at its current price.