Is Pan Electronics overvalued or undervalued?

Jun 09 2025 04:25 PM IST
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As of November 12, 2024, Pan Electronics (India) Ltd. is considered risky and overvalued, with concerning financial ratios, including a PE ratio of -10.17 and an EV to EBITDA ratio of -45.09, despite a strong long-term return of 120.66%.
As of 12 November 2024, the valuation grade for Pan Electronics (India) Ltd. has moved from does not qualify to risky, indicating a significant increase in perceived investment risk. The company is currently considered overvalued based on its financial ratios. Notably, the PE ratio stands at -10.17, the EV to EBITDA ratio is at -45.09, and the ROCE is a concerning -25.41%.

When compared to its peers, Pan Electronics shows a stark contrast; for instance, its EV to EBITDA ratio is significantly worse than the industry average, which typically hovers around 10-15 for comparable firms. Additionally, the PEG ratio of 0.00 suggests no growth potential, further reinforcing the overvaluation stance. Despite a strong performance over the longer term, with a 3-year return of 120.66% compared to the Sensex's 49.13%, the current financial metrics indicate that the stock is not a sound investment at its current price of 63.55.
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