Is Poddar Housing overvalued or undervalued?

As of 25 April 2023, the valuation grade for Poddar Housing has moved from does not qualify to risky. The company is currently assessed as overvalued given its negative PE ratio of -0.66 and a high EV to EBITDA ratio of 27.04, which indicates that investors are paying a premium for its earnings before interest, taxes, depreciation, and amortization. Additionally, the return on equity (ROE) is notably low at -54.11%, further suggesting underlying financial challenges.
When compared to peers, Poddar Housing's valuation metrics starkly contrast with those of DLF, which has a PE ratio of 46.64, and Macrotech Developers, with a PE ratio of 54.71. This highlights that Poddar Housing is not only underperforming relative to its competitors but also carries a higher risk profile. The company's stock has significantly underperformed the Sensex over various time frames, including a 1Y return of -55.66% compared to the Sensex's 7.58%, reinforcing the notion that Poddar Housing is overvalued in the current market environment.