Is Nutricircle overvalued or undervalued?

Jun 09 2025 04:27 PM IST
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As of November 12, 2024, Nutricircle is considered a risky investment due to its overvaluation, reflected in a PE ratio of 178.25 and poor recent stock performance, with a 1-week return of -18.51%, compared to a 1.38% gain in the Sensex.
As of 12 November 2024, Nutricircle's valuation grade has moved from does not qualify to risky. The company is currently considered overvalued, with a PE ratio of 178.25, an EV to EBIT of 183.69, and a Price to Book Value of -41.20. These figures indicate significant concerns regarding its valuation relative to its earnings and book value.

When compared to peers, Nutricircle's valuation metrics stand out unfavorably. For instance, MMTC Ltd. has a PE ratio of 119.39, while Optiemus Infracom Ltd. shows a more reasonable EV to EBITDA of 48.56. The stark contrast in these ratios highlights Nutricircle's overvaluation. Additionally, the company's recent stock performance has been poor, with a 1-week return of -18.51%, contrasting sharply with a 1.38% gain in the Sensex, further reinforcing the notion that Nutricircle is not a favorable investment at this time.
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