Is Southern Latex overvalued or undervalued?

As of 25 April 2023, the valuation grade for Southern Latex has moved from does not qualify to risky, indicating a significant shift in its perceived investment quality. The company appears to be overvalued, given its high PE ratio of 25.39 and a PEG ratio of 5.84, which suggests that the stock price may not be justified by its earnings growth potential. Additionally, the negative EV to EBIT and EV to EBITDA ratios of -25.43 further highlight the company's financial challenges.
In comparison to its peers, Southern Latex's valuation metrics stand out unfavorably. For instance, K P R Mill Ltd has a PE ratio of 47.51, while Trident's PE is at 42.6, both indicating that Southern Latex is trading at a premium despite its risky classification. Furthermore, the company's recent stock performance has been mixed, with a year-to-date return of -11.08%, contrasting sharply with the Sensex's 5.63% gain over the same period. This underperformance reinforces the notion that Southern Latex may not be a sound investment at its current valuation.