Is Shubham Polyspin overvalued or undervalued?

As of 18 November 2024, the valuation grade for Shubham Polyspin has moved from expensive to risky, indicating a shift in perception regarding its financial health and market position. The company is currently considered overvalued, particularly given its PE ratio of 24.79 and an EV to EBITDA ratio of 31.07, which are significantly higher than the industry average. Additionally, the negative ROCE of -4.48% raises concerns about the company's ability to generate returns on its capital.
In comparison to peers, Shubham Polyspin's valuation metrics appear unfavorable; for instance, its PE ratio is higher than that of comparable companies in the industry. The PEG ratio stands at 0.00, suggesting that there is no growth expected, which further supports the overvaluation thesis. Recent stock performance has also been underwhelming, with a year-to-date return of -17.52%, contrasting with a 5.56% gain in the Sensex, highlighting the company's struggles in a broader market context.