Is Rajdarshan Inds overvalued or undervalued?

As of 25 April 2023, the valuation grade for Rajdarshan Industries has moved from does not qualify to risky, indicating a shift in perception regarding its financial health. The company appears to be undervalued based on its current metrics. Key ratios include a PE ratio of 15.51, a price to book value of 0.71, and an EV to EBITDA of -15.41, which suggests significant concerns about profitability.
When compared to peers, Rajdarshan's valuation stands out as more favorable; for instance, Rail Vikas is deemed very expensive with a PE ratio of 69.76, while Tube Investments also ranks as very expensive with a PE of 87.5. Despite the recent stock performance showing a decline of 11.43% year-to-date compared to a 6.21% gain in the Sensex, the overall valuation metrics suggest that Rajdarshan Industries is currently undervalued relative to its peers in the non-ferrous metals industry.