Is SKIL Infrastr overvalued or undervalued?

As of 9 November 2023, SKIL Infrastr's valuation grade has moved from does not qualify to risky, indicating a shift in perception regarding its investment potential. The company appears to be overvalued at its current price of 2.91, especially when considering its PE ratio of 17.91, a significantly low price-to-book value of 0.34, and an alarming EV to EBIT and EV to EBITDA of -827.17, which suggests severe operational challenges.
In comparison to its peers, SKIL Infrastr's valuation metrics are starkly lower than those of Larsen & Toubro, which has a PE ratio of 34.21 and is rated as attractive, and GMR Airports, which is also classified as risky but has a PE of 33.47. The company's recent stock performance has been poor, with a year-to-date return of -40.25%, contrasting sharply with the Sensex's gain of 5.61% in the same period, reinforcing the notion that SKIL Infrastr may not be a sound investment at this time.