Is Scarnose Inter. overvalued or undervalued?

As of 27 May 2025, the valuation grade for Scarnose International has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently considered overvalued. Key ratios include a PE ratio of 27.89, an EV to EBITDA of 27.74, and a PEG ratio of 0.02, which suggests that despite the high price multiples, the growth potential is not being adequately reflected in the stock price.
In comparison to its peers, Scarnose International's PE ratio is lower than K.P.R. Mill Ltd. at 47.51 but higher than Trident Ltd. at 42.6, which is rated as fair. Additionally, the company's return on capital employed (ROCE) is a mere 0.85%, and its return on equity (ROE) stands at 1.99%, both of which are concerning compared to industry standards. Notably, Scarnose's stock has underperformed against the Sensex over the year, with a return of -21.85% compared to the Sensex's 7.56%, reinforcing the view that the stock is currently overvalued.