Is Quasar India overvalued or undervalued?

As of 14 August 2025, Quasar India has moved from an attractive to a risky valuation grade. The company is currently assessed as overvalued, given its negative PE ratio of -22.85 and EV to EBIT of -21.89, which indicate significant financial distress. Additionally, the ROE stands at -8.69%, further highlighting the challenges the company faces in generating returns for shareholders.
In comparison to its peers, Quasar India’s valuation metrics are starkly unfavorable. For instance, PTC India, categorized as very attractive, has a PE ratio of 8.9, while Lloyds Enterprises is deemed very expensive with a PE of 194.43. The stark contrast in these ratios suggests that Quasar India is not only underperforming but also carries a higher risk profile relative to its industry peers. The company's stock has also underperformed significantly compared to the Sensex, particularly year-to-date, where it has declined by 74.19% against a 3.15% gain in the index.