Is Suryavanshi Spg. overvalued or undervalued?

As of 25 April 2023, the valuation grade for Suryavanshi Spg. has moved from does not qualify to risky. The company is currently deemed overvalued based on its financial ratios, including a PE ratio of -10.09, an EV to EBITDA of -20.30, and a ROCE of -35.96%. These figures indicate significant financial distress, particularly with negative earnings and a troubling return on capital employed.
In comparison to peers, Suryavanshi Spg. stands out unfavorably against K P R Mill Ltd, which has a PE ratio of 47.51, and Trident, with a PE ratio of 42.6. The stark contrast in valuation metrics highlights the challenges Suryavanshi faces in the garments and apparels industry. Additionally, while the stock has shown a 5.01% return over the past year, it has underperformed the Sensex, which returned 7.57% in the same period, further reinforcing the notion of overvaluation.