Is Sanathnagar Ent. overvalued or undervalued?

As of 14 March 2024, the valuation grade for Sanathnagar Enterprises has moved from does not qualify to risky. The company appears to be overvalued based on its financial ratios, which include a PE ratio of -12.91, an EV to EBIT of -27.24, and a ROCE of -22.58%. These negative figures indicate significant financial distress compared to its peers.
In comparison, DLF Ltd. and Macrotech Developers are categorized as very expensive, with PE ratios of 46.64 and 54.71, respectively. This stark contrast highlights the challenges Sanathnagar Enterprises faces in the current market. Although the stock has outperformed the Sensex over the past week and month, its year-to-date return of -8.15% and a staggering one-year decline of -47.71% suggest that it is not a favorable investment at this time. Overall, Sanathnagar Enterprises is overvalued given its current financial metrics and market position.