Is Salem Erode Inv. overvalued or undervalued?

As of 19 September 2025, the valuation grade for Salem Erode Inv. has moved from expensive to risky, indicating a significant shift in its perceived value. The company is currently considered overvalued, as evidenced by its negative PE ratio of -10.56, an EV to EBIT of -20.74, and a troubling ROE of -22.76%. These metrics suggest that the company is struggling to generate profits and is facing substantial financial challenges.
In comparison to its peers, Salem Erode Inv. stands out unfavorably. For instance, Bajaj Finance has a PE ratio of 35.51, while Life Insurance boasts a much healthier EV to EBITDA of 9.07. The stark contrast in these ratios highlights the financial difficulties faced by Salem Erode Inv. Additionally, the company's stock performance has lagged behind the Sensex, with a year-to-date return of -23.37% compared to the Sensex's positive return of 5.74%. This further reinforces the notion that Salem Erode Inv. is overvalued in its current state.