Is Sri Nacha. Cott. overvalued or undervalued?
As of May 23, 2023, Sri Nacha. Cott. is considered overvalued and has a risky valuation grade due to negative financial ratios, poor stock performance, and unfavorable comparisons to peers.
As of 23 May 2023, the valuation grade for Sri Nacha. Cott. has moved from fair to risky, indicating a significant deterioration in its financial health. The company is currently considered overvalued. Key ratios highlight this concern, with a PE ratio of -4.72, an EV to EBITDA of 54.66, and a ROE of -16.55%. In comparison to its peers, Sri Nacha. Cott. stands out unfavorably against K P R Mill Ltd, which has a PE ratio of 47.51, and Trident, with a PE of 42.6. Furthermore, the company's recent stock performance has been poor, with a year-to-date return of -20.50%, significantly lagging behind the Sensex's 5.63% return. This combination of negative ratios and underperformance relative to peers reinforces the conclusion that Sri Nacha. Cott. is overvalued in the current market.
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