Is Source Industrie overvalued or undervalued?
As of November 12, 2024, Source Industrie is classified as risky and overvalued, with poor financial ratios indicating distress, contrasting sharply with peers like K P R Mill Ltd and Trident, despite a strong historical stock performance.
As of 12 November 2024, the valuation grade for Source Industrie has moved from does not qualify to risky. The company is currently assessed as overvalued. Key ratios indicate significant financial distress, with a PE ratio of -4.33, an EV to EBIT of -4.25, and a ROCE of -4.45%. In comparison to its peers, Source Industrie stands out negatively; for instance, K P R Mill Ltd is classified as very expensive with a PE ratio of 47.51, while Trident is considered fair with a PE ratio of 42.6. The stark contrast in valuation metrics highlights the challenges Source Industrie faces. Despite a strong historical stock performance, with a 1-year return of 40.74% compared to the Sensex's 7.60%, the current financial ratios suggest that the company is not positioned favorably in the market.
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