Is National Standar overvalued or undervalued?

As of 18 July 2025, the valuation grade for National Standar has moved from very expensive to risky, indicating a significant shift in its perceived value. The company is currently assessed as overvalued, given its exceptionally high PE ratio of 433.28 and negative EV to EBIT and EV to EBITDA ratios of -2631.44 and -2659.44, respectively. Additionally, the ROCE stands at a mere 1.94%, and the ROE is 4.24%, which further underscores the company's financial challenges.
In comparison to its peers, National Standar's valuation metrics are starkly higher than Mahamaya Steel, which has a PE ratio of 82.12 and is classified as very expensive, and Azad India, also risky, with a PE of 559.62. The company’s recent stock performance has been notably poor, with a year-to-date return of -42.79%, contrasting sharply with the Sensex's positive return of 4.63% over the same period. This further reinforces the conclusion that National Standar is overvalued in the current market environment.