Is Scintilla Comm overvalued or undervalued?

As of 19 September 2025, the valuation grade for Scintilla Comm has moved from fair to risky, indicating a shift in perception regarding its financial health. The company appears to be overvalued, given its negative PE ratio of -7.02 and EV to EBIT and EV to EBITDA ratios both at -7.66, which suggest significant operational challenges. Additionally, the ROCE and ROE are also negative at -1.23% and -1.51%, respectively, further highlighting the company's struggles.
In comparison to its peers, Scintilla Comm's valuation metrics are starkly unfavorable. For instance, Bajaj Finance has a PE ratio of 35.51 and an EV to EBITDA of 19.31, while Life Insurance boasts a PE of 11.64 and an EV to EBITDA of 9.07, both indicating much stronger financial positions. The recent stock performance shows that Scintilla Comm has outperformed the Sensex over the past year with a return of 32.33%, contrasting with the Sensex's decline of -0.67%. However, the overall financial indicators suggest that the company is not in a solid position, reinforcing the conclusion that it is overvalued.