Is Progrex Ventures overvalued or undervalued?

As of 12 November 2024, Progrex Ventures has moved from a grade of "does not qualify" to "risky." The company is currently assessed as overvalued, given its negative PE ratio of -8.19 and EV to EBIT of -8.12, indicating significant financial distress. Additionally, the return on capital employed (ROCE) stands at -1.62%, further highlighting the company's challenges in generating returns. In comparison to its peers, Progrex Ventures' valuation metrics are starkly unfavorable. For instance, Manorama Industries Ltd. has a PE ratio of 73.92, while CIAN Agro Industries & Infrastructure Ltd. boasts a PE of 31.9, both indicating much stronger market positions. With a current price of 22.72, Progrex Ventures has not shown significant stock performance relative to the Sensex, particularly over the last five years, where it has returned 227.38% compared to the Sensex's 143.01%. This suggests that despite some historical gains, the current valuation does not justify the risks associated with the company's financial health.