Is Sungold Media overvalued or undervalued?

As of 16 July 2025, the valuation grade for Sungold Media has moved from risky to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 12.71, an EV to EBIT of 12.32, and a PEG ratio of 0.25. In comparison to its peers, PVR Inox, which is rated attractive, has a PE of 10.95, while Prime Focus, rated fair, has an extraordinarily high PE of 1761.69, showcasing the disparity in valuation across the industry.
Sungold Media's financial metrics suggest that despite its high valuation grade, it struggles with low returns, evidenced by a ROCE of only 0.36% and an ROE of 0.26%. The company's recent stock performance has been notably poor, with a year-to-date decline of 41.67%, contrasting sharply with a modest 5.75% gain in the Sensex. This further reinforces the notion that the stock is overvalued relative to its financial performance and market conditions.