Is Shree Mfg. Co. overvalued or undervalued?

As of 9 July 2024, Shree Mfg. Co. has moved from a grade of does not qualify to risky, indicating a significant shift in its valuation outlook. The company appears to be overvalued given its current financial ratios, including a PE Ratio of 0.00, a Price to Book Value of -3.87, and an EV to EBIT of -11.82. These figures suggest a concerning financial position, particularly with negative capital employed and negative book value.
In comparison to its peers in the garments and apparels industry, Shree Mfg. Co. stands out with its risky valuation grade, while other companies maintain more stable ratios. For instance, its EV to EBITDA ratio of -11.82 is notably poor, reflecting a lack of profitability and operational efficiency. Additionally, while the stock has seen a 15.01% return over the past month, it still lags behind the Sensex's 3.86% return, reinforcing the notion that the stock may not be a sound investment at its current price of 11.80.